manufacturers in the second half of FY21, said analysts of credit rating agency Icra. While production volumes were stable in April, retail sales slumped over the last two months indicating inventory build-up in the system.
Industry volumes are expected to remain muted in June as well, with many OEMs and suppliers currently operating in single shifts, the rating agency mentioned in a note.
As per Icra, the industry has also been witnessing a rise in raw material pries, led by a surge in global commodity prices. Commodity prices are expected to remain elevated in H1 FY22, before softening in the second half.
According to Vinutaa S, assistant vice president and sector head, Icra estimates a revenue loss of 30-40% sequentially, and this