Cotton prices are going up in the country, owing to an increase in raw material prices due to China factor, Sanjeev Sancheti, CFO of Welspun India, on Thursday.
“The input cost have been under pressure over the last quarter. We have seen cotton prices going up for various reasons, the China factor is playing a big role there and there has been a supply constraint. Therefore, margins are expected to be under pressure,” he told CNBC-TV18 in an interview. "We are working with our customers and trying to get price increase, but that will take about a quarter or two,” he added.
Welspun India reported a strong set of Q3 results with margins expanding and debt reducing by over Rs 500 crore since March 2020. Sancheti is expecting these trends to continue in FY22 as well.
“We should be able to grow reasonably well. We are not guiding for next year. Our current year guidance is now increased above Rs 7,300 crore. We have embarked upon an expansion plan for home textile business, so our debt will continue to remain below Rs 2400 crore," he said.
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