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Textiles sector EBITDA likely to dip by 15% in FY21: Ind-RA
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The nationwide lockdown in India is likely to impact the textiles sector both in terms of demand and supply and the EBITDA might drop by least 15 per cent in 2020-21 across the industry portfolio.

India Ratings and Research (Ind-Ra) in a report said the fall in consumer income and increase in household leverage will continue to have a negative sentiment through FY21.

While India's dependency on imports is limited, it is dependent on exports and hence, the return of demand from the key markets including the US, the UK, the UAE and China is critical.

The EBITDA (earnings before interest, taxes, depreciation and amortisation) will drop at least 15 per cent in FY21 across its textile portfolio.

Further, it said the COVID-19 pandemic is likely to continue to impact the global textile production and supply chains and thereby textile product prices.