Global retailers and brands have reported that their inventory levels have recovered to pre-COVID standards, indicating a recovery in the textile business, a recent report of Avendus Spark observed.
But it also emphasises a cautious view of demand as apparel manufacturers wait for an increase in order book momentum. This cautious optimism implies that for the foreseeable future, the order cycle might continue to be shorter than typical.”Garment companies are still awaiting a revival in order book momentum,” the report stated.
According to the report, cotton spinners in India are benefiting from decreased global cotton pricing, which is driving up volume sales. The industry’s sales increased by almost 8 per cent in the last quarter of the fiscal year 2024 (4QFY24) over the prior year. However, the overall gain was constrained by a 5 per cent decline in yarn prices. Value increase is anticipated to shortly match volume growth as cotton prices have stabilised.
As Indian exporters gained market share, the home textile companies had a solid quarter during which they saw a 16 per cent value growth, according to the report.
According to the Indian Textile report, robust volume growth helped cotton spinning companies achieve 5 per cent revenue growth year over year, even with a 5 per cent fall in yarn pricing. Exports connected to cotton rose by 18 per cent year over year and 20 per cent sequentially. Demand increased as Indian cotton prices momentarily fell below those of other countries. At the moment, cotton prices in India are almost 13 per cent higher than those worldwide.
EBITDA margins for clothing producers increased by 177 basis points in 4QFY24, mostly as a result of decreased input costs. It further stated that when compared to peers, vertically integrated players showed greater margin growth.
