These positive trends have been fuelled by lower cotton prices and the gradual stabilization of supply chains. The report highlighted a significant surge in volume growth, projected at 6-8 per cent for this fiscal year, compared to the previous year’s 3-5 per cent. However, despite this uptick in volume, revenue growth is anticipated to be slower than the previous fiscal year’s 14 per cent. Crisil Ratings stated that cotton prices are expected to decrease by 15-17 per cent, and man-made fiber prices are projected to drop by 8-10 per cent in this fiscal year. Operating margins are forecasted to expand by 50 basis points (bps) year-on-year, reaching 9.5 per cent, mainly due to increased domestic and export volume and reduced cotton prices.

Source: Economic Times September 30, 2023 08:57 UTC