Icra outlook on ports negative for FY21 despite signs of recovery in July

General cargo throughput may witness 6-8% contraction in FY21; container segment decline by 12-15% during same period

Despite early signs of recovery in the port sector in the month of July, Icra's outlook remains negative on the sector for FY21, since sustainability of the uptick remains to be seen.

The Indian port sector witnessed a sharp contraction during Q1 FY2021 due to the impact of Covid-19 and containment measures adopted by the government.

While the major ports witnessed a 20 per cent decline in Q1FY21, smaller ones declined by 24 per cent during the same period.

However, in July, the rate of cargo decline decelerated with major ports showing a YoY decline of 13 per cent and non-major ports posting