Readymade garment makers to see 25-30% fall in revenue in FY21: Crisil

Mumbai: Readymade garment (RMG) makers are most likely to witness a twenty five-thirty per cent decline in income in ongoing fiscal year thanks to the extended lockdown and lower discretionary spending, in accordance to a report by Crisil Scores.

A sharp fall in both of those domestic and export demand mainly because of the COVID-19 pandemic will crimp garment makers’ income by twenty five-thirty per cent, Crisil Scores stated.

For exporters, the fall will be more mainly because of tepid discretionary spending in the US and European Union, which account for sixty per cent of India’s RMG exports, it stated.

The working funds cycle of RMG makers has elongated mainly because of larger inventory and stretched receivables, which is predicted to impair their credit rating profiles, the report stated.

The previous fiscal finished with twenty-twenty five per cent larger inventory as the COVID-19 pandemic took hold and lockdowns commenced in

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