Vardhman Textiles Ltd (VTL), for Q2FY18, on a consolidated basis, continued to witness EBITDA margin pressure, in-line with expectation. Higher raw material cost (up 840bps to 55.8%) and employee expense (up 101bps to 8.9%) led to EBITDA margin contraction of 785bps to 13%. Revenue grew by ~2% to 1,523 crore while adjusted net profit decline by 42% to 133 crore. Management View: The management has maintained its view that margins could see some improvement from Q4FY18, with the expectation of higher acreage under cotton leading to softening of prices in the new cotton season 2017-18 (Oct-Sept)....