The Q3 results of Vardhman Textiles are not expected to be very encouraging. Revenue could be in single or early double digits as compared to 18 per cent reported in Q2 say highly placed sources. Vardhman Textiles is among India’s largest manufacturers of yarn, sewing threads and acrylic fiber. It manufactures for brands like GAP, H&M, Uniqlo, Benetton, Wills, Van Heusen, and Peter England.
The margins of yarn prices came under pressure when cotton prices came down in September last and got adjusted with it as most Indian spinning companies were holding on to. For the Vardhman Group, which is going to invest Rs 560 crores in weaving and fabric units in Baddi town of Himachal Pradesh, fourth quarter could be better as the project will be completed in 18 months and will add 250 looms to the weaving capacity, which in turn will help consolidate the overall fabric business.
