Thursday, June 18, 2020

Aviation, hospitality sectors have a long road ahead to recovery: Icra

Mumbai: While India Inc is expected to deliver a weaker performance for June quarter of FY2021 compared with the already bad March quarter, some sectors, like aviation and hospitality are staring at a long timeline for recovery, says ICRA.
The rating agency said although production and consumption of essential goods continued during the Covid-induced lockdown, the impact on production and consumption of discretionary items has been significant, both due to the restrictions in place, as well as the bleak consumer sentiment.
“Given the layoffs, pay-cuts and general uncertainty regarding job stability, a negative trend is likely to continue over the near term, in absence of any significant demand triggers,” it said.
On the discretionary side, aviation and hospitality, especially, will have a longer grind ahead given the continued consumer wariness on non-essential travel, the rating agency noted.
In terms of investment-related sectors like construction, the immediate impact is negative given that even post partial relaxations of the lockdown from April 20, the pace of construction activity has been slow due to reverse migration of labour, Icra said in a press statement.
It said the Indian corporate sector, already reeling under the impact of multiple headwinds saw both an annual and sequential contraction in revenues with aggregate revenues contracting by 2.9% on a Y-o-Y basis in Q4 FY2020.
18/06/20 Saloni Shukla/Economic Times
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