Textiles companies' topline likely to decline by 20-25% in FY21: India Ratings and Research

MUMBAI: India Ratings and Study on Friday said textile businesses are most likely to see a 20-25 per cent drop in their topline this fiscal owing to muted domestic demand from customers and sub-par exports in the April-June quarter owing to COVID-19 similar disruptions. Ind-Ra in a report said coronavirus similar disruptions weighed on the textitle sector which has been facing a number of headwinds in kind of flattening demand from customers from key exporting countries and expanding competition from neighbouring countries like Bangladesh, Pakistan and Vietnam.

Textile businesses throughout the value chain could witness a topline contraction of 20-25 per cent on a year-on-year foundation in FY21, on back of a muted domestic demand from customers and sub-par exports all through 1QFY21 owing to COVID-19 similar disruptions, Ind-Ra said in a report.

The COVID-19 similar demand from customers disruptions could significantly effects businesses with weaker equilibrium sheets and limited

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