Good News :
Border Adjustment Tax Abandoned
This will benefit textile exporters like Kitex, as it has some 90% export to US.
With US moving out of TPP, Cancellation of BAT is +ve
Cotton price expected to decrease September onwards. Cotton production in India estimated at 380 million bales against 340 million bales produced last year. The area sown as on July 14 was 90.88 lakh hectare, up by 17 % from 73.93 lakh hectare sown on the corresponding date of previous year
Interest Rate could be cut 25 bps tomorrow.
Carter, one of the key clients of Kitex has posted good results, Net sales increased 8%, With more stores expansion in plans in US, Canada and other regions, procurement from Kitex are expected to be higher as they have plans for increasing the direct sourcing. Most of the sourcing is through agent currently. I think MD also mentioned that carter could alone grow to $50 mln sales. (320 cr)
Bad news: Dont think need to post it as its already covered in this forum. One +ve is cash spent for reducing debt. With such free cash flow, need to pay attention to future plans- increase in dividends, capex etc.