Eclat Textile Company Ltd., a major Taiwanese technology-based textile firm, recently recorded very impressive gross and operating margins for the second quarter of 2018 from its new plants in Vietnam.
According to analysts, the margins will continue to surge in the next two quarters as well. The last quarter witnessed Eclat’s gross margin increase by 2.25 percentage points y-o-y (28.8 per cent) whereas the operating margin surged by 3.29 percentage points (19.5 per cent).
Due to its strong product pricing and increasing volume of sales, the company managed to reach historical numbers for its operating and gross margins.
Addition of new capacity and steady recovery in end-market demand boosted the sales of the textile company and enhanced its annual operating profit by 40.04 per cent to reach US $ 44 million in the April-June quarter.
Reportedly, the rate of capacity utilisation at the company’s two garment plants in Vietnam has reached 60 per cent and is expected to touch 90 per cent in the last quarter. While the sales of the third quarter may see a growth of 3 per cent quarterly, the sales for the last quarter may increase by 6 per cent.
Channie Wang, Jih Sun Analyst, said that the growth, will in all likelihood, extend into 2019.
