Crisil, Retail News, ET Retail

Davida Erdahl

Mumbai: Readymade garment (RMG) makers are most likely to witness a 25-thirty for every cent decrease in profits in ongoing economical yr thanks to the extended lockdown and decreased discretionary expending, in accordance to a report by Crisil Rankings.

A sharp drop in both domestic and export demand since of the COVID-19 pandemic will crimp garment makers’ profits by 25-thirty for every cent, Crisil Rankings said.

For exporters, the drop will be extra since of tepid discretionary expending in the US and European Union, which account for 60 for every cent of India’s RMG exports, it said.

The doing work funds cycle of RMG makers has elongated since of larger stock and stretched receivables, which is anticipated to impair their credit score profiles, the report said.

The past fiscal finished with 20-25 for every cent larger stock as the COVID-19 pandemic took keep and lockdowns started in late March.

With

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