The prospect of textile issuers will still experience many obstacles in their business development next year. It is not surprising that the textile and textile products (TPT) sector, according to Apindo, is one of three sectors that will impose mass layoffs next year. For example, constrained by the depreciation of the rupiah. Considering that the majority of TPT issuers still import raw materials. Not to mention, the quiet export market also affected the decline in sales value of textile issuers. Likewise because of the era of interest rate hikes which are predicted to continue next year.
Head of Research at NH Korindo Sekuritas Liza Camelia said the difficulties for the textile sector came from dependence on transactions using the US dollar. This is because the use of local currency is one way to reduce dependence on the US dollar. Not to mention the benchmark interest rate that has risen again.
On the other hand, the textile industry still needs to continue strengthening working capital. The first idea that came up was of course by taking credit from the bank. The problem is, the banks themselves have stopped L/C facilities since the end of 2020. Fortunately, OJK adopted a policy of extending the credit restructuring period for 1 year until March 31, 2024.
"Textile sector issuers have a very high debt position, amidst the trend of rising interest rates it is very unwise not to settle these large debts immediately," said Liza, Friday (23/12).
Looking at the company's financial statements, the textile company PT Sri Rejeki Isman Tbk (SRIL) recorded sales until the end of September 2022 falling 25.58% to US$ 474.17 million compared to the same period last year of US$ 637.1 million. Loss for the year attributable to owners of the parent company amounted to US$ 147.7 million.
As is known, SRIL shares have been suspended for 19 months due to PKPU (from a maximum suspension period of 24 months which will be reached on 18 May 2023). Lapkeu looks very unhealthy, with a liability portion of IDR 24.22 trillion. That exceeds assets of IDR 15.88 trillion, thus creating an equity deficit of minus IDR 8.34 trillion.
In the same fate PT Pan Brothers Tbk (PBRX) recorded a decline in sales. As of September 2022, PBRX has pocketed sales of US$ 501.96 million, down 1.15% on an annual basis, aka year on year (YoY). As a result, the company's net profit only reached US$ 3.381 million, a 70.9% drop compared to the same period in 2021 which amounted to US$ 11.625 million. "PBRX's financial condition is still much healthier, but the debt to equity ratio in the third quarter of 2022 remains above 1. However, PBRX can still survive because it is assisted by the export market," explained Liza.
A decline in sales also occurred at PT Panasia Indo Resources Tbk (HDTX) from IDR 8.95 billion at the end of September 2021, to IDR 5.90 billion at the end of September 2021. This value fell 34.12% on an annual basis. HDTX shares are also in line for delisting. The company's shares have been frozen for the last 3.5 years. The suspension is even 42 months old. Likewise with PT Ever Shine Tex Tbk (ESTI) which recorded sales growth of 4.37% yoy to US$ 22.67 million. However, net profit fell the most by 96.46% to US$ 34.98 thousand.
