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

Readymade garment (RMG) makers are likely to witness a 25-30 per cent decline in revenue in ongoing financial year due to the prolonged lockdown and lower discretionary spending, according to a report by Crisil Ratings.

A sharp fall in both domestic and export demand because of the Covid-19 pandemic will crimp garment makers' revenue by 25-30 per cent, Crisil Ratings said.

For exporters, the fall will be more because of tepid discretionary spending in the US and European Union, which account for 60 per cent of India's RMG exports, it said.

The working capital cycle of RMG makers has elongated