After Q2 results, i had asked a few questions to the company’s investor relations team. Here is the response from them:
"Company’s share in domestic Market is same as last year, There is no change in the market share. However, due to GST implementation, the Domestic Customers, kept wait and watch situation in first two months. Also it was mandated that they will liquidate the PRE GST stocks before placing new orders. This resulted in lower sales. This has since been absorbed and now the sales are again in line with our expectations.
The decline in sales is attributed to export sales decline, due to partly being supplied from Vietnam and also due to lower demand in overseas markets. This will be compensated by growth in Vietnam sales (PGVL) in Q3 and q4.
Company’s Vietnam operations are on the right track and the unit has declared a marginal profit in first six months as compared to loss Last year.
While efforts are being placed to ensure improvement in Q3, Hopefully Q3 and Q4 will be a recovery path,"
And they don’t seem to have added new clients in Vietnam. As of now, this Vietnam plant is at Hanes’ mercy.