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earnings | IST

Nitin Spinners sees robust orderbook in yarn segment; expects festive season to boost fabric biz

Nitin Spinners has been in focus after the company reported its Q1 numbers. The company is seeing a robust orderbook in its yarn business and an uptick in its fabric segment. Dinesh Nolkha, MD of Nitin Spinners, spoke with CNBC-TV18 about the performance and the business outlook.

Nitin Spinners has been in focus after the company reported its Q1 numbers. The company is seeing a robust orderbook in its yarn business and an uptick in its fabric segment. Dinesh Nolkha, MD of Nitin Spinners, spoke with CNBC-TV18 about the performance and the business outlook.
Talking about orderbook, Nolkha said, “We are having a very robust order book of nearly a quarter or so. Our yarn business has a very good order book at the moment. Fabric business is also picking up as domestic demand is coming up and a lot of it depends on what kind of domestic uptick is there in the coming festive months, so that will also have an impact on our orderbook.
On COVID impact on their different operations, Nolkha said, “We have spinning, weaving and knitting operations, we are manufacturers of cotton yarn, and cotton fabrics. So for our spinning operations, we had no disruptions. In fact, we were running at full capacities that were fully optimally utilised.
“As far as our knitting operations are concerned, we saw a very good demand in that segment as well. So that was also running at full capacity. But weaving industry makes most of the products from the formal weavers and for the domestic market, that was disrupted. We were able to uitlise an average of about 75 percent of our capacity. We could manage the sales, most of the sales was of yarn to the export markets,” he explained.
He further added, “As you know, the states were under lockdown, the domestic demand was disrupted so we were quite flexible and we changed our product portfolios and strategies to export to various countries all around the globe.”
On volume growth, Nolkha said, “Our volume growth in the yarn business was about 2 percent. I would like to clarify here that we need not look at the year-on-year numbers because that is completely disruptive. If you see on year-on-year basis, our production has gone up by nearly 40 percent, but if you see on quarter-on-quarter basis, volumes have grown by 2 percent in yarn segment. In the fabric segment, they have come down by about 10 percent.
On price trend, he said, “During the last quarter, we saw a jump of about 12-13 percent on the raw cotton prices and similar kind of increase was there in the yarn prices as well, so we passed on the increase, whatever was on the raw cotton prices. We saw globally, that cotton prices have gone up by about 10 percent and domestically in India, we saw that prices went up by about 12-13 percent. In yarn prices also, we saw an increase of about 12 percent.
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