Nitin Spinner conducted their concall for Q2 FY 22
Here are the conference call highlights π§΅π
Here are the conference call highlights π§΅π
Business Updates:
β’ Achieved highest topline & bottom line, due to better capacity utilization, focus on value added product, cost efficient product & increasing exports
β’ Added 7,296 spindles & yarn capacity has increased to 75K TPA
β’ Excluding RoDTEP benefit margin is 24.7%
β’ Achieved highest topline & bottom line, due to better capacity utilization, focus on value added product, cost efficient product & increasing exports
β’ Added 7,296 spindles & yarn capacity has increased to 75K TPA
β’ Excluding RoDTEP benefit margin is 24.7%
Industry:
β’ China +1 & Atmanirbhar Scheme of govt. adding industry growth
β’ Demand of yarn is increasing, which make easy to pass on the prices
β’ Global production of cotton is down by 2.5%.
β’ Further price rise may not make sense. Continuous price rise of cotton will impact
β’ China +1 & Atmanirbhar Scheme of govt. adding industry growth
β’ Demand of yarn is increasing, which make easy to pass on the prices
β’ Global production of cotton is down by 2.5%.
β’ Further price rise may not make sense. Continuous price rise of cotton will impact
β’ Utilization of spinning is at its peak. Most of the capacity is at its stream.
β’ Export nos are also increasing MoM. Cotton yarn export is around 110Mil kg per month, which was 75Mil previously.
β’ By end of FY23 new capacity of Nitin Spinner would be on the board.
β’ Export nos are also increasing MoM. Cotton yarn export is around 110Mil kg per month, which was 75Mil previously.
β’ By end of FY23 new capacity of Nitin Spinner would be on the board.
Business Products:
β’ Home textile demand remains very well strong.
β’ Pricing season for home textile is twice a year, hence next pricing season increasing cast will be passed on.
β’ Apparel has seen good come-back since last 2 months.
β’ Home textile demand remains very well strong.
β’ Pricing season for home textile is twice a year, hence next pricing season increasing cast will be passed on.
β’ Apparel has seen good come-back since last 2 months.
Production:
(Production Volume in figures).
β’ Around 25% of the yarn is used fro Knitted Fabrics & Woven Fabric.
β’ Knitting & Woven are nearly to top capacity.
β’ In Q3, co. has passed on the increasing price of cotton.
β’ Fabric business has potential for increase in volume.
(Production Volume in figures).
β’ Around 25% of the yarn is used fro Knitted Fabrics & Woven Fabric.
β’ Knitting & Woven are nearly to top capacity.
β’ In Q3, co. has passed on the increasing price of cotton.
β’ Fabric business has potential for increase in volume.
Export:
β’ As of now export is more beneficial than domestic due to covid in Q1 & RodTEP announced post that. Balance more towards export as of now.
β’ As of now export is more beneficial than domestic due to covid in Q1 & RodTEP announced post that. Balance more towards export as of now.
Realization:
β’ Yarn prices has been increased to 355-360rs which was 320Rs in Q1.
β’ Raw Material price of co. is ruling as per industry price.
β’ Cotton prices have gone up, but as per past, post price hike it may consolidate and then again make movement.
β’ Yarn prices has been increased to 355-360rs which was 320Rs in Q1.
β’ Raw Material price of co. is ruling as per industry price.
β’ Cotton prices have gone up, but as per past, post price hike it may consolidate and then again make movement.
Value Added Product:
β’ Also focusing on adding many new products, in order to increase the product basket.
β’ Mgmt is looking for expansion in fabric segment, but it would be considering sustainable demand of the product.
β’ Also focusing on adding many new products, in order to increase the product basket.
β’ Mgmt is looking for expansion in fabric segment, but it would be considering sustainable demand of the product.
Other:
β’ Reduced debt by 227cr.
β’ Planning for brown field expansion near to existing facility. Not considering any invest in PLI.
β’ For new capacity expected time mgmt takes is 12-15 months.
β’ Reduced debt by 227cr.
β’ Planning for brown field expansion near to existing facility. Not considering any invest in PLI.
β’ For new capacity expected time mgmt takes is 12-15 months.
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