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Icra in its latest report has said that even as macro headwinds impact performance of textile players across segments in the second quarter of 2022-23, the companies are expected to witness a healthy turnover in this financial year (FY23). However, it said the margins are expected to moderate amidst cost pressures.

Icra Assistant Vice-President and Sector Head, Corporate Sector Ratings, Sahil Udani said in the second quarter of FY23, revenue and margins dipped for the Indian spinners amidst macro headwinds, while for the apparel segment the revenue and margins remained flat, with recessionary conditions in key markets.

Further, he added most textile players reported a decline in inventory levels in the second quarter of FY23 after cotton stocks from the previous harvest season started to reduce and cotton prices saw a sharp volatility, resulting in players becoming cautious on buying.