Ajanta Pharma experiences softness in demand despite lesser disruptions

The impact of Covid-19 on the business is minimal and the company is taking all the steps to mitigate the adverse impact of the pandemic.

Jul 13, 2020 11:07 IST India Infoline News Service

Ajanta Pharma
Ajanta Pharma Limited informed the exchanges Monday that being in a pharmaceutical sector, company has seen relatively lesser disruptions. Significantly higher material and freight costs etc. are impacting the business. The exact impact will be quantified in Q1FY21 results.

“There is some softness in Indian Pharmaceutical market and same will be applicable to us also where our India business performance will be impacted in similar lines,” company said.

The impact of Covid-19 on the business is minimal and the company is taking all the steps to mitigate the adverse impact of the pandemic.

All our manufacturing units are working, as per guidelines issued by the Central and State Governments and have provided necessary and critical support in this challenging times. There are certain challenges such as low attendance of staff, supply chain disruptions etc.

All its offices are located in Mumbai and are completely closed since March 20, 2020 and employees are working from home and providing necessary and critical support to ensure that manufacturing and other operations run seamlessly.

The company further said that there is no material impact on capital and financial resources. The company is debt-free and is carrying cash and cash equivalents which can meet its requirement for next few quarters. There are supply chain constrains but the same are at manageable levels and not impacting manufacturing or supply operations.

Ajanta Pharma Ltd is currently trading at Rs1,403.85 down by Rs15.5 or 1.09% from its previous closing of Rs1,419.35 on the BSE.

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