Vardhman Textiles expects Q3 margins, revenues not to be great.

Vardhman Textiles is among India’s largest manufacturers of yarn, sewing threads & acrylic fiber. It manufactures for brands like GAP, H&M, Uniqlo, Benetton, Wills, Van Heusen, and Peter England.

According to Neeraj Jain, Joint Managing Director, Vardhman Textiles the third quarter results are not expected to be great and revenue could be in single digits or early double digits as compared to around 18 percented reported in Q2.

As most of the Indian spinning companies were holding on to cotton and when the cotton prices worldwide came down September, the yarn prices got adjusted with the cotton price. But the margins come under pressure

They expect the fourth quarter could be better

With Vardhman Group set to invest Rs 560 crore for setting up weaving and fabric units in Himachal Pradesh’s Baddi town, Jain said that the project will be completed in 18 months and will add 250 looms to the weaving capacity, which in turn will help consolidate the overall fabric business.

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