Indian Shoe Industry Revenue Is Expected To Grow By 25% In 2022

According to a report issued by the Credit Rating Information Service Rating Agency of India (Crisil), due to the impact of the new crown epidemic, the revenue of the Indian shoe industry in the 2021 fiscal year will fall by more than one-fifth, and the revenue in the 2022 fiscal year is expected to increase by 25%, but the profit margin Will still be under pressure.

Crisil, an Indian credit rating information service rating agency, said that due to the lockdown of the epidemic, people working from home will severely affect the demand for footwear in the first half of fiscal 2021, resulting in a 21% drop in overall shoe industry revenue.

If revenue growth of 23%-25% is achieved in the 2022 fiscal year, the Indian shoe industry will return to its pre-epidemic scale. However, rising raw material prices will bring cost pressures, and in fiscal 2022, profit margins will fall by 1.50% to 1.75%.

Although rising raw material prices have brought cost pressures, due to a healthy capital structure, their credit status will remain stable. This is a conclusion drawn from a study of 86 rated shoe companies.