Wazir Textile Index Textile Index - Q1 FY21.pdf5 Wazir Textile Index (WTI) –Q1 FY21 100 112.3...
Transcript of Wazir Textile Index Textile Index - Q1 FY21.pdf5 Wazir Textile Index (WTI) –Q1 FY21 100 112.3...
Wazir Textile IndexQuarterly Update
Q1 FY 2021
Textile Sector Performance Update September 2020
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Contents• Wazir Textile Index – Q1 FY21
• Quarterly Financial Performance – Q1 FY21
• Market Update
• Key Economic Indicators
• Export – Import Trend
• Annexure: Wazir Textile Index – Explanation
Wazir Textile Index (WTI) – Q1 FY21
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List of Companies Included as Part of the Financial AnalysisTop listed textile companies in terms of sales turnover in FY20 have been included for financial analysis.
S. No. Company Name Annual Sales* - FY20 (Rs. Crore)
1 Arvind 6,705
2 Vardhman 6,325
3 Welspun India 5,324
4 Trident 4,699
5 Raymond 3,186
6 KPR Mill 2,898
7 Filatex 2,782
8 RSWM 2,771
9 Sutlej 2,379
10 Nahar Spinning 2,083
Note: Companies that have shown significant negative deviation in numbers or those which have not yet reported the financials have not been included in the overall analysis.
Source: Money Control • Sales constitutes total operating income • standalone financials have been considered for analysis
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Wazir Textile Index (WTI) – Q1 FY21
100112.3 116.5 125.5 130.9
56.4
Base Year(Q1 FY16)
Q1FY17
Q1FY18
Q1FY19
Q1FY20
Q1 FY21
WTI Sales
100110.6
84.3 89.8 96.6
11.9
Base Year(Q1 FY16)
Q1FY17
Q1FY18
Q1FY19
Q1FY20
Q1FY21
WTI EBITDA
100 100 100 114.1 120.8
106.7
127.9 132.2
111.4
140.5 138.3
117.1
145.6 148.1
120.1
57.8
102.7
68.3
RM Cost Employee Cost Other Cost*
Base Year (Q1 FY16) Q1 FY17 Q1 FY18 Q1 FY19 Q1 FY20 Q1 FY21
WTI Cost
• The Textile Index has seen adrastic drop in sales andEBITDA in Q1 FY21 owing tothe COVID-19 lockdown.
• In Q1 FY21, overall salesdropped by 57% ascompared to that in Q1FY20.
• The overall EBIDTA showeda decline of 88% in Q1 FY21as compared to Q1 FY20.
• Raw Material cost andmanpower cost alsodecreased by 60% and 31%,respectively during thesame period.
Quarterly Financial Performance – Q1 FY21
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Quarterly Analysis for the Selected Top Players
1,7421,558 1,435 1,305
685 802 697 701 649 534493771
1,202
708
24
400145 216 188 210
Arvind Vardhman Welspun India Trident Raymond KPR Mill Filatex RSWM Sutlej Textiles Nahar Spinning
Q1 FY20 Q1 FY21
Quarterly Sales Trend – Q1 FY21 (Rs. Crore)
Quarterly EBITDA Margin Trend – Q1 FY21
9%15%
24% 23%
2%
17%7% 5% 7% 7%
-6%
-1%
19% 16% 20%
-4%
-23%-13%
-1%Arvind Vardhman Welspun India Trident Raymond KPR Mill Filatex RSWM Sutlej Textiles Nahar Spinning
Q1 FY20 Q1 FY21
-72% -51% -16% -46% -96% -50% -79% -69% -71% -61%
Growth %
Source: Money Control
-567%
* Standalone financials have been considered for analysis
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Quarterly Analysis - Major Expenses as % of Sales
51% 53% 48% 44% 41%59%
81%58% 60% 61%
46% 55%39% 45%
126%
50%85%
62% 56% 54%
Arvind Vardhman WelspunIndia
Trident Raymond KPR Mill Filatex RSWM Sutlej Textiles NaharSpinning
Q1 FY20
Q1 FY21
12% 9% 9% 11%17% 13%
2%13% 13% 11%
25%16%
10% 14% 19%
6%
25% 29%
14%
Arvind Vardhman WelspunIndia
Trident Raymond KPR Mill Filatex RSWM Sutlej Textiles NaharSpinning
Q1 FY20
Q1 FY21
Employee Cost - % of Sales
Other Costs - % of Sales
28% 24% 19% 22% 40% 11% 9% 24% 20% 21%35% 30% 32% 25%
219%
11% 13% 36% 29% 32%
Arvind Vardhman WelspunIndia
Trident Raymond KPR Mill Filatex RSWM Sutlej Textiles NaharSpinning
Q1 FY19
Q1 FY20
Raw Material Cost - % of Sales
322%
Source: Money Control * Standalone financials have been considered for analysis
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Consolidated Analysis for the Selected Top Players
10,107
4,356
Q1 FY20 Q1 FY21
-57%
Consolidated Sales – Rs. Crore
On consolidated level, sales have decreased by 57% in Q1 FY21 as compared to
Q1 FY20.
Average EBITDA %
13.2%
3.8%
Q1 FY20 Q1 FY21
-9.4 p.p*Consolidated EBITDA margin decreased by 9.4 percentage points for the selected top
companies.
Average RM Cost - % of Sales
10.8%17.4%
Q1 FY20 Q1 FY21
Average Employee Cost - % of Sales
22.3%29.5%
Q1 FY20 Q1 FY21
Average Other Expenses - % of Sales
Average RM cost decreased by 4.3 percentage points in Q1 FY21 as
compared to Q1 FY20.
Average employee cost increased by 6.6 percentage points in Q1 FY21 as compared to Q1 FY20.
Other expenses increased by 7.2 percentage points in Q1 FY21 as
compared to Q1 FY20.
53.7% 49.4%
Q1 FY20 Q1 FY21
Market Update
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Key Economic Indicators
35.4 26.9
Q1 FY20 Q1 FY21
Index of Industrial Production (IIP*)
Wholesale Price Index (WPI*)
India’s GDP (at constant prices)
Average IIP for apparel decreased by 58% in
Q1 FY21 as compared to Q1 FY20, while that of textiles showed a
decline of 75%.
Average WPI for textiles decreased by
3% in Q1 FY21 as compared to Q1 FY20, while that of apparel remained constant.
-23.9%
India’s real GDP shrinks a record 23.9% in Q1 FY21 as compared to
that in Q1 FY20.
Rs Lakh Cr
100
120
140
160
180
200
Ap
r'17
Jun
e'17
Au
g'17
Oct
'17
Dec
'17
Feb
'18
Ap
r'18
Jun
'18
Au
g' 1
8
Oct
'18
Dec
'18
Feb
'19
Ap
r'1
9
Jun
e'19
Au
g'19
Oct
'19
Dec
'19
Feb
'20
Ap
r'20
Jun
'20
Textiles Apparel
100
110
120
130
140A
pr'
17
Jun
e'17
Au
g'17
Oct
'17
Dec
'17
Feb
'18
Ap
r'1
8
Jun
'18
Au
g' 1
8
Oct
'18
Dec
'18
Feb
'19
Ap
r'19
Jun
e'19
Au
g'19
Oct
'19
Dec
'19
Feb
'20
Ap
r'20
Jun
'20
Textiles ApparelSource: Reserve Bank of India, Economic Advisor, Govt. of India * Base Year 2011-12
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India’s overall T&A* Exports
Category FY19 FY20 % change Q1 FY20 Q1 FY21 % change
Fibre 3,028 1,892 -38% 382 314 -18%
Filament 1,306 1,162 -11% 299 97 -67%
Yarn 4,770 3,501 -27% 886 533 -40%
Fabric 4,787 5,065 6% 1,189 504 -58%
Apparel 16,156 15,509 -4% 4,172 1,448 -65%
Home Textile
5,453 5,272 -3% 1,327 714 -46%
Others 1,998 1,818 -9% 449 245 -45%
Total 37,498 34,220 -9% 8,704 3,856 -56%
India’s Textile & Apparel Exports (Values in US$ Million)
26%
23%
7%7%
6%
31%
U S A EU-28 UAE Bangladesh China Others
24%
27%7%
5%4%
34%
India’s Top T&A Markets
• The T&A exports have shown a drastic decline of 56% in Q1 FY21 as compared to that in Q1 FY20 owing to the economic lockdowndue to covid-19 in major markets around the world
• Filament witnessed the highest dip of 67%, followed by Apparel with a dip of 65%.• USA, EU-28 and UAE remain the top export destinations for India’s T&A products with a combined share of 56%.
% Value Share
Q1 FY20
Q1 FY21
Source: DGCI&S * Textile & Apparel
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India’s overall T&A* ImportsIndia’s Textile & Apparel Imports (Values in US$ Million)
38%
10%10%4%
3%
34%
India’s Top T&A Import Markets
• The overall T&A imports of Q1 FY21 have reduced to half as compared to Q1 FY20 owing to the economic lockdown due to covid-19 in India
• Fabric imports witnessed the highest dip of 63% followed by yarn with a dip of 59%, during the same period.• On the contrary, imports of Others have increased significantly by 23% in Q1 FY21 as compared to Q1 FY20. The increase is mainly
due to the imports of PPE kits and other related products which are classified in ‘Others’• As the imports of PPE kits and other related products are majorly from China so, it increased share of China in Indian imports
significantly by 10% in Q1 FY21 as compared to Q1 FY20
% Value Share
Q1 FY20
Q1 FY21Category FY19 FY20 % change Q1 FY20 Q1 FY21 % change
Fibre 1,701 2,382 40% 579 248 -57%
Filament 718 752 5% 197 86 -56%
Yarn 412 462 12% 112 46 -59%
Fabric 2,472 2,324 -6% 618 232 -63%
Apparel 1,106 1,144 3% 232 132 -43%
Home Textile
285 298 5% 63 37 -40%
Others 699 796 14% 185 228 23%
Total 7,393 8,158 10% 1,985 1,010 -49%
Source: DGCI&S * Textile & Apparel
48%
10%
9%
3%3%
27%
China EU-28 U S A Vietnam Indonesia Others
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26.5
8.4 3.4 2.1 1.6 1.2 0.7 1.1 0.7 0.4 0.3
13.1
3.0 2.4 0.9 0.8 0.8 0.6 0.5 0.5 0.3 0.2
World China Viet nam India Bangladesh Indonesia Cambodia Mexico Pakistan Turkey Jordan
Q1 FY20 Q1 FY21
28.0
9.5
3.4 2.1 1.6 1.2 1.3 0.7 0.8 0.4 0.3
23.9
12.5
2.8 0.9 0.8 0.8 0.8 0.6 0.5 0.3 0.2
World China Viet nam India Bangladesh Indonesia Mexico Cambodia Pakistan Turkey Jordan
Q1 FY20 Q1 FY21
T&A Imports of USA have decreased by 50% in Q1 FY21 (excluding PPE imports)
Overall Imports and Top Import Countries of USA – (PPE Included)
Source: UN Comtrade
-18% -55% -46% -34% -12% -31% -21% -28%
in US$ Billion32%
UK data is not available for Q1 2019 as it was previously part of EU-28 only
USA’s T&A imports showed a decline of 14% in Q1 FY21 as compared to previous year. The decline is lower then expected primarily due to the significant jump in the imports of PPE kits, mainly from China. This resulted in 32% increase in China’s exports to EU.
Considering Without PPE imports, there is a decline of 50% in US T&A imports in Q1, FY21
-28% -56% -47% -15% -57% -31% -39% -28%
in US$ Billion
-50%
-64%
Overall Imports and Top Import Countries of USA – (Without PPE)
-36%
-39%
-14%
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Monthly Apparel Import Update - USA
Values in US$ Bn.
7.6
6.7 6.1 6.2
6.7 6.9
8.8
6.8
5.9 5.2
3.4 2.7
4.0
6.0 -11% -11%
-15%
-45%
-60%
-43%
-32%
-75%
-50%
-25%
0%
25%
-
Jan Feb Mar Apr May Jun Jul
2019 2020 YoY Change
US apparel imports are recovering steadily after hitting the lowest in May. From Jan to Jul. the cumulative imports are down by approx. 31%.
Source: OTEXA
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Gainer and Loser Supplier Countries of USA Apparel Imports
CountryJan-Jul 2019 Jan-Jul 2020 YTD Change
Value Share Value Share Value Value% Share
China 14,500 30% 7,346 22% -7,154 -49% -8%
India 2,624 5% 1,751 5% -873 -33% 0%
Vietnam 7,806 16% 6,943 20% -864 -11% 4%
Honduras 1,572 3% 833 2% -739 -47% -1%
Mexico 1,886 4% 1,206 4% -680 -36% 0%
Bangladesh 3,567 7% 2,905 9% -661 -19% 2%
Cambodia 1,451 3% 1,539 5% 89 6% 2%
Burma 121 0.2% 156 0.5% 35 29% 0.3%
Macau 8 0.02% 32 0.1% 24 286% 0.1%
Ethiopia 108 0.2% 125 0.4% 17 16% 0.2%
Others 15,223 31% 11,038 32% -4,185 -27% 1%
Total 48,866 33,876 -14,990 -31%
Values in US$ Mn.
China has lost maximum share (8% decrease) in the US market while Vietnam has been able to increase its share by 4%. None of the supplier nations have registered any appreciable increase in trade value.
Source: OTEXA
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26.9
6.9 4.8 3.7 2.0 - 0.9 1.0 0.9 0.4 0.5
14.9
4.1 2.3 1.8 0.8 0.6 0.5 0.5 0.5 0.3 0.3
World China Bangladesh Turkey India United Kingdom Viet Nam Pakistan Cambodia Myanmar United States ofAmerica
Q1 FY20 Q1 FY21
27.6
7.3 4.8 3.7 1.0 2.0 - 1.0 0.9 0.6 0.5
31.9
19.7
2.3 2.1 0.8 0.8 0.7 0.6 0.5 0.4 0.3
World China Bangladesh Turkey Viet Nam India United Kingdom Pakistan Cambodia Tunisia United States ofAmerica
Q1 FY20 Q1 FY21
T&A Imports of EU have declined by 45% in Q1 FY21 (Excluding PPE Imports)
Overall Imports and Top Import Countries of EU-27 – (PPE Included)
Source: UN Comtrade
16%
-51% -43% -12% -61% -44% -44% -37% -33%
in US$ Billion170%
UK data is not available for Q1 2019 as it was previously part of EU-28 only
In the first graph, EU’s T&A imports have increased by 16% in Q1 FY21 as compared to that in Q1 FY20. This is primarily due to the significant jump in the imports of PPE kits, mainly from China. This resulted in tremendous growth of 170% in China’s exports to EU.
Whereas considering without PPE imports, there is a 45% decline in EU’s imports in Q1 FY21.
-52% -50% -61% -41% -47% -46% -28% -36%
in US$ Billion-45%
-41%
Overall Imports and Top Import Countries of EU-27 – (Without PPE )
Annexure: Wazir Textile Index (WTI) - Explanation
19
Measuring Financial Performance of Indian Textile Sector• Wazir Textile Index has been developed for assessing the overall financial performance of the textile sector on a continuous
basis.
• This index takes the collective performance of top ten textile companies (by sales) of 2015-16 as the base/benchmark which isrepresented by the base Index number 100.
• Base value of 100 is assigned separately to each quarter performance and full year performance in 2015-16, andcorrespondingly financial performance of the textile industry is benchmarked to this base number to assess quarterly (Q1), halfyearly (H1), nine monthly (9M) and yearly performance (FY) for subsequent years against the set benchmark.
• Overall textile index includes the following three components:
• WTI Sales : Consolidated sales index of top ten companies
• WTI EBITDA : Consolidated EBITDA index
• WTI Cost : Consolidated index for cost of Raw material, employee & others
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Glossary• EBITDA – Earnings Before Interest Tax Depreciation &
Amortization
• EU – European Union
• FY – Financial Year
• FY19 – April 2018 to March 2019
• FY20– April 2019 to March 2020
• GDP – Gross Domestic Product
• Q1 FY20 – April 2019 to June 2019
• Q1 FY21 – April 2020 to June 2020
• RM – Raw Material
• T&A – Textile & Apparel
• USA – United States of America
• UK – United Kingdom
• VSF – Viscose Staple Fibre
• WTI – Wazir Textile Index
• YOY – Year on Year
• YTD – Year till date
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