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Second Covid wave unlikely to severely impact textile sector: Ind-Ra
ANI |
Updated: May 19, 2021 15:07 IST
However, a sustained export demand, learnings from the first wave, stronger balance sheet and liquidity compared to 4Q FY20 when the first wave struck the economy will enable the sector credit profile to remain stable in FY22.
Ind-Ra said the supply chain has been impacted by local lockdowns imposed at key textile hubs like Tirupur, Ludhiana, Surat and Bhilwara. The restricted movement of goods means non-availability of inputs such as yarns and fabric is likely to have a short-term impact on the finished output.
The labour availability has also been impacted but moderately and at much lesser severity than that during the first wave. Shop floors are likely to remain functional at a few plant sites but a restricted occupancy level. ....

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