IIFL, in its report, has cut its earnings per share (EPS) estimate for Vardhman Textiles giving two reasons, one is that they expect the international cotton prices to fall upto 8 percent and secondly, the uncertainty with regards to goods and services tax (GST).
In an interview to CNBC-TV18, Neeraj Jain, Joint MD of Vardhman Textiles spoke about the latest happenings in his company and sector.
“The area under cultivation next year is expected to be much higher. So the overall crop seems to be better compared to this year and that is why there could be an expectation of higher inventory, so the prices may drop,” he said.
Jain further mentioned that current inventory will have an impact as prices fall down.
Speaking about GST, he said that, “Going by all the input credits available on the services and other things, there may not be any adverse impact on the cotton yarn side.”For full discussion, watch accompanying video...