Footwear industry likely to register moderate growth of 7-8% in FY24: ICRA
Follow us Now on Telegram ! Get daily 10 - 12 important updates on Business, Finance and Investment. Join our Telegram Channel
https://t.me/InvestmentGuruIndiacom
Download Telegram App before Joining the Channel
Icra in its report has said that the footwear industry is likely to register a moderate growth of 7-8 per cent in the current fiscal (FY24) against 28 per cent in FY23. The industry witnessed a muted revenue growth in the first half of FY24, mainly on account of factors like sluggish volume growth and no significant increase in average selling price.
It stated the mass segment faces headwinds, and demand is unlikely to improve significantly in the near term, though sales recovery during the festive and wedding season in H2 FY2024 could partially offset muted revenue growth in H1.
Further, it said, on the input side, softening raw material (RM) prices are estimated to support the operating margin (OPM) in H1 FY2024. However, increasing RM prices since August 2023 are likely to impact the margins in H2 FY2024. It added ‘Consequently, the OPM is likely to remain flat at 18.5 per cent in FY2024.’
