Hosiery Boom: Rural Demand & Exports Fuel Growth in India

Indian hosiery manufacturers are set for a 10-12% revenue increase this fiscal year, driven by a surge in rural demand and exports. Improved operating margins, due to stable input costs and increased capacity utilization, will enhance cash accruals and liquidity, with modest capital requirements maintaining financial stability.

In a positive turn for the Indian hosiery industry, manufacturers are poised to see a 10-12% hike in revenue this financial year, fueled by a resurgence in rural demand and an uptick in exports, according to a report released on Thursday.

Crisil Ratings indicates that operating margins will likely improve 150-200 basis points, backed by stabilizing input costs and enhanced capacity utilization.

Factors such as a robust monsoon, increased agricultural output, and government spending on rural infrastructure will buoy rural demand, while export growth to the Middle East and North Africa, combined with a thriving modern trade sector, will boost urban sales.

(With inputs from agencies.)