Denim players foresee better margins in Q3

Buoyed by growth in domestic and overseas

market, after a subdued period Indian denim manufacturing firms have either posted better results during third quarter of current fiscal or expect to do so. Companies believe after a dismal first two quarters, the third quarter has brought back some positivity in the denim fabric sales, leading to better bottomline.

For instance, for the third quarter ended December 12, 2012, Arvind posted a healthy 15 percent growth in its textile business and 12 percent growth in textile net profit which mainly includes its denim business. Similarly, Tamil Nadu-based KG Denim registered a whopping 271.96 percent growth in its net profit apart from a 36.5 percent increase in its net income for Q3 of fiscal 2012-13. From Rs 1.07 crores worth net profit for the third quarter in previous fiscal 2011-12, the same increased by 271.96 percent in the said quarter for the current fiscal at Rs 3.98 crores.

Even Nandan Exim, the denim arm of textile conglomerate Chiripal Group, expects to post higher margins even as the company awaits its financial results next week.