I am looking for more details like reason for revenue de-growth of about 16% in Q1 FY17-18.
One of the reasons is de-stocking by its customers in US, thus demand from US seems reducing.
Also, in spite of recent capacity expansion from 68 million meters to 90 million meters in FY16-17, it is going to take time to realize the benefits of this expansion.
Cotton prices going up by about 10% in past few months may put some additional burden on input costs. We need to see if Management can pass on this RM price increase to its customers soon.
Though the business fundamentals still look good, this story will take time to show some real uptrend in revenues. All said and done, things may turn out to be positive from here.
Disc: Invested since 2016.