Home textile industry to see 7-9% rise in revenues in FY24: Crisil Ratings
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Crisil Ratings in its latest report has said home textile industry's revenues are expected to rise 7-9 per cent this fiscal (FY24) as the sector regains global share following a correction in domestic cotton prices and restocking by big-box retailers in major overseas markets. It said in the last financial year, their revenues had declined 15 per cent.
According to report, operating profitability of the industry will improve 150-200 basis points to 14-14.5 per cent this fiscal, due to lower raw material cost and better operating leverage, but will still hover below the pre-pandemic levels. It noted improved operating performance will also have the industry maintaining a stable credit outlook despite moderate capex.
The report is based on an analysis of 40 companies, accounting for 40-45 per cent of the sectoral revenues. As much as 70-75 per cent of the industry-wide revenues are from exports, with the US, its biggest market, accounting for more than half of it.
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