Karachi, June 22, 2021 (PPI-OT): Textile export surge by 41% YoY during May

Textile exports increased by 41% YoY to US$1.06bn during May-2021 compared to US$751mn in the same month last year. High growth on YoY basis in textile exports was always on the cards, given the massive plunge in May-2020 owing to the lockdowns.

On MoM basis, textile exports declined by 20% in May-2021, where all categories of textile exports witnessed double digit declines during the month.

On YoY basis, the increase was visible in all categories, most notably knitwear (62%), towels (48%) and garments (44%), whereas yarn (39%) and cotton cloth (37%) exports also recorded significant increases.

Cumulatively, textile exports improved by 19% YoY in 11MFY21, where value added segments were the main contributors to the increase, as a low cotton yield during the year led to most of the cotton production being consumed locally.

Textile exports are expected to improve in the coming months; however, the quantum of the increase could be contingent on the much-awaited textile policy. Amid current yarn dynamics, we have a strong liking towards Nishat Chunian (NCL), whereas Nishat Mills (NML) and Kohinoor Textile Mills (KTML) also appear to be attractive bets at current prices.