The Indian Port sector is witnessing deceleration in cargo decline in Q2 FY2021, with cargo at Indian ports witnessing Y-o-Y decline of ~9% each in July and August, after severe contraction of ~22% in Q1 FY2021 due to the impact of Covid-19 pandemic. The recovery has been relatively better at non major ports. The recovery trend is driven by easing of containment measures and uptick in economic activity. The major cargo segments impacted are POL, coal and containers; while fertilisers and iron ore have bucked the trend and grown during 5m FY2021.
It is true that the impact of COVID-19 impact on India Inc in FY2020 was only for a few days – the last two weeks of March. But many would agree that the Indian economy was already in trouble and COVID-19 only exposed the fault lines.
Andhra Pradesh has been facing a grave financial crisis for the past few months because of the lockdown and the disruption caused due to COVID-19. In April the CM of the state even made a pitch for liberal financial aid to Prime minister.
India Ratings and Research (Ind-Ra) has maintained a negative outlook on energy and transport infrastructure for 2HFY21, stemming from a likely low demand, driven by low thermal plant load factor and subdued wind generations, and the resultant impact on coverage metrics. The agency has also maintained a negative outlook on the roads and airport sectors.