Related Keywords: better product mix, first quarter of current financial year, GST implementation, likely to perform better, Profit margins of textile companies, rebound in customer footfalls, remaining under pressure, restocking by traders, revival in profit margins, second quarter, textile companies with low debt, traders destocking
Profit margins of textile companies after remaining under pressure in the first quarter of the current financial year due to traders’ destocking ahead of the GST implementation effective July 1 are expecting a revival in their profit margins in the second quarter (July-September) on a rebound in customer footfalls and restocking by traders following GST compliance.
Not only small players but large ones, too, saw profits being squeezed in the quarter ended June. Primary textile players had stocks returned to them amid fears of the GST’s burden on unsold inventory.
