- Demand momentum is expected to sustain during Q2-Q4 FY2022, continuing on the trend of past three quarters
- Export demand has been mainly driven by the US, the largest market, accounting for ~60% share in India’s home textile exports
- Despite economies opening up, increased prevalence of stay-at-home options is supporting demand; institutional demand also likely to pick up with revival in the hospitality sector
- While increased raw material and logistics costs remain a transitory drag, benefits of operating leverage and improved clarity on export incentives to help offset the impact

Riding high on pandemic-induced lifestyle changes stemming from heightened consciousness about hygiene and increased prevalence of stay-at-home options, Indian home textile exporters are set to register robust performance during FY2022. These factors have driven a sharp surge in demand for home improvement products over the past one year, and the demand momentum is expected to sustain during Q2-Q4 FY2022, continuing on the trend of the past three quarters. ICRA’s sample set of companies (comprising four large, listed players, accounting for ~35-40% share in India’s home textile exports) are projected to clock a robust double-digit growth of ~20-25% in FY2022. This follows a subdued 5% growth in revenues reported by the sample in FY2021, primarily due to ~40% Y-o-Y dent in performance in Q1 FY2021; the sample grew by ~25% Y-o-Y during the rest of the year. It is noted that the sample had reported ~18% Y-o-Y decline in operating income in Q4 FY2020 as well, as the pandemic had started affecting the key countries of export. However, even after adjusting the base for the same, Indian home textile exporters are estimated to have reported a healthy growth of ~15-20% in the nine-month period ended March 2021.

Elaborating on this, Ms. Pavethra Ponniah, Senior Vice President & Co-Group Head, Corporate Sector Ratings, ICRA, said: “For the past three quarters, sales for the sample set have averaged ~25-40% higher than the 3-year average for the pre-Covid period. Home textile exports was one of the first few textile segments to recover from the impact of the pandemic last fiscal, with companies reverting to Y-o-Y growth from Q2 FY2021 itself and reporting three consecutive quarters of double-digit growth thereafter. The export demand has been mainly driven by the US, the largest market, accounting for ~60% of India’s home textile exports. Compared to a 9% increase in India’s home textile product exports of US$5.7 billion in FY2021, exports to the US increased by ~14%, while exports to the other major markets of the UK and the EU reported a Y-o-Y decline during the year. Besides faster opening up, increase in exports to the US is partly attributable to the distribution model for these products, with a meaningful share accounted for by the large departmental chains that remained open even during the lockdown phase.”
Moreover, expectations of a strong festive demand this year, backed by favourable vaccination coverage across key markets is reflected in the healthy order book position of Indian home textile exporters. ICRA’s channel checks suggest that the larger exporters have robust order backlog and are likely to rely more on job-work/ outsourcing to fulfil delivery commitments over the next few quarters.
In terms of financial performance, improved economies of scale and softer input costs helped the companies in the sample report an improvement in operating margins in FY2021. While benefits of operating leverage are likely to sustain in FY2022, with expectations of a healthy sales turnover, cost pressures have intensified. Cotton yarn, a key raw material for manufacturing made-ups, has been trading at nearly ~40-50% higher levels Y-o-Y. Nevertheless, the rating agency expects operating efficiencies and re-negotiation of product prices amid sustained cost pressures to help companies maintain their profitability at robust levels.

ICRA’s sample reported a dip in profit margins in Q4 FY2021 as many players, particularly the larger ones, did not factor in export incentive benefits, or factored in the same at lower rates for the quarter in the absence of any clarity on the new export incentive scheme. However, with the Government notifying continuation of the Rebate of State and Central Taxes and Levies (RoSCTL) scheme on exports of apparels and made-ups till March 31, 2024, companies recognised their export incentives for the previous quarter in Q1 FY2022, reporting ~500-600 bps jump in operating margins to 21.9% on a sequential basis, from 16.1% in Q4 FY2021. Adjusted for this, operating margins were still healthy at ~17.6% in Q1 FY2022 (Q4 FY2021: 20.6%), though lower than the previous quarter due to the impact of higher raw material prices. Clarity on the scheme has brought in much-needed relief to the Indian exporters of made-ups/ home textiles, as this would enable them to effectively price their products without worrying about retrospective changes.
Ms. Nidhi Marwaha, Vice President & Sector Head, Corporate Sector Ratings, ICRA, adds: “Going forward, while the opening up of economies will lead to some moderation in demand with increased household budgets allocated to alternate discretionary uses such as travel and dining out, greater prevalence of work-from-home vis-à-vis pre-Covid times is likely to sustain demand for home textile products. Further, higher occupancy in the hospitality sector is expected to support recovery in institutional demand, which has remained muted in the recent quarters.”
levaquin 500mg without prescription levofloxacin online buy
buy dutasteride sale celebrex 200mg ca buy zofran 8mg sale
aldactone 100mg canada order spironolactone sale order fluconazole 100mg without prescription
ampicillin 500mg pills buy sulfamethoxazole generic generic erythromycin 250mg
fildena 50mg cheap oral robaxin 500mg order methocarbamol generic
sildenafil 100mg canada sildenafil 100mg drug estradiol 1mg generic
order lamotrigine 200mg for sale order lamotrigine online retin order online
cheap tadalafil diclofenac 50mg without prescription purchase diclofenac pill
isotretinoin 40mg cost order accutane 20mg pills order zithromax without prescription
indomethacin 75mg uk purchase terbinafine order generic trimox 500mg
cialis daily cost cialis free samples cialis viagra sales
anastrozole 1mg uk sildenaflex viagra alternative sildenafil overnight shipping usa
generique cialis acheter 50mg du sildenafil viagra generique pas cher
deltasone 5mg uk cialis on sale purchase sildenafil online cheap
cialis 10mg kaufen sildenafil 100mg fГјr frauen viagra generika
buy accutane for sale amoxil order stromectol 12mg
modafinil 100mg pills purchase modafinil sale purchase diamox sale
order doxycycline 200mg pill buy doxycycline 100mg furosemide order online
generic altace 10mg clobetasol pill purchase astelin for sale
buy catapres 0.1mg pill catapres us spiriva online
hytrin price terazosin 1mg over the counter sulfasalazine 500 mg canada
alendronate pills buy alendronate 70mg online pepcid 20mg ca
order benicar 20mg divalproex 500mg tablet buy acetazolamide
tacrolimus 5mg cheap buy trandate sale ursodiol 300mg drug
purchase isosorbide without prescription lanoxin 250 mg oral telmisartan 80mg us
bupropion over the counter quetiapine buy online quetiapine price
molnunat 200 mg cheap buy molnunat 200mg pill prevacid brand
buy zoloft without prescription sildenafil 200mg uk buy viagra sale
order salbutamol 100mcg generic order protonix 40mg without prescription viagra 50mg us
order tadalafil 40mg cialis tadalafil purchasing viagra on the internet
buy tadalafil without prescription buy cialis 10mg generic buy symmetrel generic
revia drug albendazole 400 mg pill order abilify 30mg for sale
avlosulfon 100mg cheap adalat us order perindopril sale
order medroxyprogesterone sale buy medroxyprogesterone 10mg online purchase periactin online
oral modafinil 100mg canadian pharmacies online buy stromectol pills
luvox 100mg generic glipizide 5mg uk purchase glipizide online
accutane 40mg pill isotretinoin 10mg cheap deltasone generic
piracetam buy online nootropil online order viagra 150mg for sale
buy azithromycin 500mg for sale buy azithromycin 250mg generic neurontin 800mg drug
cialis 10mg us brand cialis pills buy viagra 100mg generic
buy furosemide generic order hydroxychloroquine pills buy generic plaquenil 400mg
tadalafil 40mg brand betnovate 20gm cream order clomipramine 25mg sale
order itraconazole pill buy prometrium 100mg sale buy tinidazole 500mg
buy glycomet 500mg pills tadalafil 20mg sale cialis cheap
order olanzapine 10mg sale buy nebivolol for sale order diovan for sale
norvasc cost norvasc buy online order cialis 20mg online
order clozaril 50mg pill ipratropium 100 mcg cost brand dexamethasone
sildenafil australia lisinopril 5mg pills cheap lisinopril 10mg
linezolid without prescription free slots online casino near me
omeprazole 20mg ca prilosec pills slot machine
purchase metoprolol sale buy lopressor order levitra 10mg generic
buy a research paper online online blackjack casino free slot games online
buy vardenafil 20mg pills buy oral medrol medrol 8mg tablet
academia writing write papers for me order sildenafil 100mg pills
clomiphene 100mg drug cost ventolin 4mg free casino games no registration no download
cialis 40mg ca cialis 20mg brand order viagra 50mg pills
aristocort order online order generic claritin order clarinex generic
buy dapoxetine 90mg generic cost cytotec 200mcg synthroid sale
cheap tadalafil 10mg sildenafil 100mg canada oral viagra 100mg
cost xenical 60mg xenical 120mg oral acyclovir 400mg oral
cialis 10mg generic order plavix 150mg buy plavix for sale
allopurinol us purchase zetia pill order zetia 10mg sale
buy methotrexate 2.5mg pill order metoclopramide sale order metoclopramide without prescription
cozaar 25mg usa losartan sale topiramate 200mg oral
baclofen 25mg generic lioresal over the counter toradol order
sumatriptan 50mg ca buy sumatriptan 50mg pill avodart us
gloperba drug online gambling money sports gambling real money poker online
zantac order ranitidine 150mg without prescription celebrex sale
slots games free casino slot games casino online
order flomax pill buy spironolactone 100mg pills order generic spironolactone 100mg
cialis 5mg without prescription cialis 10mg cheap order cipro 1000mg online
buy zocor generic simvastatin 10mg sale proscar price
buy flagyl 200mg without prescription purchase augmentin for sale sulfamethoxazole usa
purchase fluconazole pill buy sildenafil 50mg online cheap brand sildenafil 100mg
purchase cephalexin online cheap keflex 125mg cheap purchase erythromycin pills
purchase tadalafil generic buy cialis 10mg online cheap cheap viagra online
viagra 150mg order tadalafil 40mg for sale buy tadalafil 20mg pill
ceftin 500mg usa careprost allergy nasal spray methocarbamol 500mg brand
casino blackjack no deposit bonus codes cialis 40mg drug
brand desyrel order aurogra 50mg generic sildenafil 100mg drug
research paper help online stromectol usa ivermectin cream
sildenafil next day delivery usa estrace buy online buy lamictal 50mg online