The Covid-19 pandemic has completely halted production in Tirupur with payments delayed for the shipments sent before the lockdown. Exporters say some customers are not taking delivery of the shipments because they have shut shop. Ready-made garment players had been hoping for a revival in demand in China but with the virus spreading to Europe, the US and other major markets, there are no orders coming from the major retailers.

India Ratings and Research has revealed that for FY20, profit margins in the city are likely to be impacted by 120-150bp and credit metrics to moderate with pressure on liquidity and higher working capital utilizations

The agency assumes that India’s exports — already reduced by more than 40 per cent till January 2020 owing to the US-China trade war —will be substantially hit till H1FY21. The agency assumes Ebitda will drop at least 15 per cent in FY21 across its textile portfolio.