Rupee fall hardly to boost textile cos bottomline, says SP Tulsian, sptulsian.com.
Tulsian told CNBC-TV18, "In fact, there was an article or maybe report couple of days back that about 100,000 crore Indian banks exposure to textile sector is in a big soup and the textile sector is asking for the re-schedulement and we all know that inspite of the tuffs where the 5% rebate on the interest is given if we have this kind of pathetic performance, I don't think that this is going to be any help to the company."
He further added, "When you talk with the textile exporters, they say that the foreign buyers are quite smart and they make the backward calculations, taking consideration the currency benefits, which are derived by the local manufacturers, I am not talking of the few cases. One case in point could be Arvind who are the largest denim makers. If they play on their efficiencies like purchase of cotton at a lower prices, supplying the special kind of denim at a slightly higher price, one or two companies may succeed and I don't think that it's purely the business economics that is working in favor of these kind of company, but I don't really find whether you talk of the company like Alok , Bombay Rayon , in fact Bombay Dyeing is not into the textile space. Raymond , Century Textile . I don't think that you can really pinpoint any of the companies who are really stand to gain from these kind of things."
"So I won't be- just take a general call, maybe like case in point of Arvind Textile, where try to play on the trading bumps or maybe the trading volatility in the range of 15-20%, but inspite of such a huge rupee weakness, I won't be seeing any positive flowing in to the textile sector."
