Revenue of cotton spinners to contract by 25-30% in FY21: Icra Ratings

Revenue of Indian cotton spinners is likely to decline by 25-30 per cent year-on-year in 2020-21 due to Covid-19 pandemic-led disruptions in manufacturing activities and weakness in demand in global as well as domestic markets, Icra Ratings said in a report.

This will further add to the woes of the sector which saw an estimated 5-7 per cent decline in revenue and 200-250 basis points (bps) correction in operating margins in FY20, it said.

The Indian cotton spinning sector is expected to log a 25-30 per cent y-o-y decline in revenue and a 300-400 bps contraction in operating margins in