LIVE TV
ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Jobs
  • Indian Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • Authors
  • More ...
    • VIDEOS
    • PHOTOS
Read in App
Business News » India News

Ind-Ra assigns stable outlook for cotton textiles in FY18

Ind-Ra has revised its cotton outlook to stable for FY18 from negative for FY17, in view of stable input prices, healthy capacity utilisation and steady domestic demand scenario.

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Ind-Ra assigns stable outlook for cotton textiles in FY18
The stable cotton outlook is in view of an increase in acreage, a rise in supply in the first quarter of FY18. Photo: Pixabay
Written By: PTI
Updated: Mon, Mar 13, 2017
11:48 am
Mumbai, PTI
RELATED NEWS
India pitches for rating upgrade with S&P, cites macro stability India pitches for rating upgrade with S&P, cites macro stability
Major reforms undertaken; India deserves rating upgrade: Garg Major reforms undertaken; India deserves rating upgrade: Garg
India Ratings projects economic growth at 7.1% next fiscal India Ratings projects economic growth at 7.1% next fiscal
Govt not disappointed by S&P rating action: Eco Affairs Secy Govt not disappointed by S&P rating action: Eco Affairs Secy
India Inc's capital expenditure revival still four years away? India Inc's capital expenditure revival still four years away?

India Ratings (Ind-Ra) has maintained a stable outlook for cotton textiles for the next financial year following steady input prices, healthy capacity utilisation and healthy domestic demand.

The agency has revised its cotton outlook to stable for FY18 from negative for FY17, in view of stable input prices, healthy capacity utilisation and steady domestic demand scenario.

It will emanate through fiscal incentives and implementation of Goods and Services Tax (GST) that will improve the industry's export competitiveness, Ind-Ra said.

Favourable trade agreements with the US and Europe will also lead to a significant increase in India's exports and a higher-than-expected domestic demand would be positive for the sector, it added.

The agency revised its outlook for synthetic textiles to stable for FY18 from negative for FY17.

Moreover, Ind-Ra said, the US' exit from the Trans-Pacific Partnership is likely to realign textile trade and investments towards the Indian subcontinent that were diverted to Vietnam over FY16-FY17.

The stable cotton outlook is in view of an increase in acreage, a rise in supply in the first quarter of FY18 (due to demonetisation) and a decline in global inventory assisting with a balanced supply, Ind-Ra said.

Ind-Ra expects operating profitability levels of Indian cotton ginners and exporters to moderate in FY18. Liquidity position of small players was acutely affected due to a surge in cotton prices in first half of FY17, followed by a challenging operating environment in the second half due to demonetisation, it added.

The cotton acreage is estimated to increase 10-15 per cent to nearly 120 million hectares in FY18, leading to increased production, the rating agency said.

Ind-Ra opined that textile companies would be able to de-leverage their balance sheets in FY18, mainly in the absence of major investments due to adequate capacities and pending uncertainty over the GST tax rates.

The next round of investment cycle is expected from FY19, it added.

Ind-Ra expects an improvement in the credit profiles of textile companies, including raw cotton players, driven by lower cotton inventories, limited capital investments and reduced borrowing costs. 

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
India Ratingsstable outlook for textileFY18FY17ratingstextileGST tax ratesGood and Service TaxTrans-pacific partnershipEconomy
RELATED NEWS
India pitches for rating upgrade with S&P, cites macro stability India pitches for rating upgrade with S&P, cites macro stability
Major reforms undertaken; India deserves rating upgrade: Garg Major reforms undertaken; India deserves rating upgrade: Garg
India Ratings projects economic growth at 7.1% next fiscal India Ratings projects economic growth at 7.1% next fiscal
Govt not disappointed by S&P rating action: Eco Affairs Secy Govt not disappointed by S&P rating action: Eco Affairs Secy
India Inc's capital expenditure revival still four years away? India Inc's capital expenditure revival still four years away?

LATEST NEWS

Gujarat Board Latest Exam News: Will GSHSEB POSTPONE HSC SSC exams? Class 10, class 12 board exam candidates, DON'T MISS to check details here

YES Bank stock! Expert suggests Rs 17-18 target price for this lender

What expert said about these Rakesh Jhunjhunwala stocks in gaming space - Delta Corp, Nazara Technologies

Cancel CBSE Board Exam 2021: After Arvind Kejriwal, Punjab CM Amarinder Singh says POSTPONE CBSE board exams, shoots off letter to Pokhriyal

Even in pandemic FY21 NOT a DUD – Money raised via IPOs, FPOs up by a WHOPPING 115%

CBSE Class 10 Class 12 Board Exams – Students, Parents welcome Govt’s Decision to Cancel CBSE Board exam 2021

Free Fire OB27 update: Check release date and time in India, upcoming patch, weapons and more

Lockdown like curfew in Maharashtra from TODAY: Check timings, what will remain open and closed - Check all details here

TCS emphasizes on providing technological solutions to its customers: V Ramakrishnan, CFO

Apple officially announced 'Spring Loaded' launch event on April 20; New iPad Pros and more coming- Check all details here

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
Copyright © Zee Media Corporation Ltd. All rights reserved