Spinners weave multi-year high profits in second quarter

Cotton yarn

Despite multiple headwinds, the surge in cotton yarn exports helped domestic spinners record a healthy recovery during the second quarter of current fiscal, said an Icra report

18-20% – export growth expected in cotton yarn in current financial year 2018-19

50% – surge in yarn exports in five months of current fiscal

34% – jump in cotton yarn exports in seven months of this fiscal

13.7% – improved aggregate operating margins of 13 spinning firms in Q2 FY19

12.2% – aggregate operating margins in Q1 of this fiscal

90% – growth in cotton yarn exports to China in seven months of 2018-19

Despite exports retreating to normal levels in the recent months in absolute terms, Icra expects the annual growth in India’s cotton yarn exports to remain healthy," Jayanta Roy, senior VP and group head, corporate sector ratings