The ratings agency said the balance sheets, strengthened by healthy cash accrual and debt reduction over the past two fiscals, will lend support. Exports account for 60-70% of the Indian home textile industry's revenue.
The US, the world's largest market, accounts for a sizeable 58% of these exports. Global demand for home textiles is expected to be impacted in the near-term by inflationary headwinds, with big-box retailers pruning inventory and consumers cutting discretionary spends.
A slowdown in the sales of key US retailers in the past 3-6 months triggered an on-year decline of 5-6% in overall home textile exports from India between January and April 2022. Adding to the demand challenge is the price of raw cotton, a key input in home textiles.
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