Q2 Results are out. Some observations:
- Their revenue has grown QoQ and YoY. It looks like the industry is slowly recovering. However, we need to see the effect of inflation.
- Cost of cotton has decreased over last year. But, in quarterly report it shows that the cost of raw materials have increased. Not sure why.
The cotton futures prices are trending upward. It is expected to have upward pressure in coming months. So, the industry is still not out of the woods. - The primary change in operating expense is the change in inventory. It appears that the inventory is still piling up as can also be seen on balance sheet.
While the company’s numbers have stabilised since last year, it appears that they still have a long way to go and repay their debt.
Disc: Invested.
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