Q1 2025 Vardhman Textiles Ltd Earnings Call Transcript
Key Points
- Vardhman Textiles Ltd (BOM:502986) reported an improvement in business performance, particularly in cost efficiency and internal cost-saving initiatives.
- The company has benefited from the China +1 strategy, with more brands looking at India as a key vendor base.
- Vardhman Textiles Ltd (BOM:502986) has made significant investments in capacity building and capability building, particularly in handling more fibers and specific cotton products.
- The company is progressing well with its expansion projects, which are expected to be completed within the financial year, enhancing cost efficiency and production flexibility.
- The demand for fabric has been stable, with the US market showing better retail sales and inventory levels, leading to higher orders.
- The prices of yarn have been declining due to falling New York Futures, impacting the company's realization.
- The Indian cotton prices are higher compared to the international market, posing a challenge for the overall Indian textile industry.
- The company's utilization rate remains at around 75%, with no significant improvement, affecting overall efficiency.
- The margins in the spinning business are under pressure due to higher raw material costs and lower yarn prices.
- There are concerns about the impact of the minimum support price (MSP) for cotton announced by the Government of India, which could affect the industry's margins.
Ladies and gentlemen, good day, and welcome to Vardhman Textiles Limited Q1 FY25 conference call hosted by Batlivala & Karani Securities. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Roshan Nair from Batlivala & Karani Securities. Thank you, and over to you, sir.
Thank you. Good evening, everyone, and welcome to Q1 FY25 earnings conference call of Vardhman Textiles Limited. On behalf of B&K Securities, I welcome all the participants and the management of Vardhman Textiles Limited to the call. We have with us Mr. Neeraj Jain, Joint Managing Director; Ms. Sagrika Jain, Executive Director; Mr. Sushil Jhamb, Director or Materials; Mr. Rajeev Thapar, CFO; Mr. Mukesh Bansal, Head, Fabric Marketing; and Mr. Varun Malhotra, Head of Finance.
Without further ado, I would like to hand over the floor to Mr. Neeraj Jain for his opening remarks, post which we can have a Q&A session. Thank you, and over to
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