Ajanta Pharma foresees no material impact due to Covid-19 pandemic

There are certain challenges such as low attendance of staff, supply chain disruptions, significantly higher raw material and freight costs etc. which are impacting the company’s business being softer than normal.

Jun 11, 2020 12:06 IST India Infoline News Service

Ajanta Pharma Limited informed the exchanges today that Pharmaceutical sector has seen relatively lesser disruptions due to Covid-19 pandemic, being part of essential items. Hence, all its manufacturing units are working, strictly following the guidelines issued by the Central and State Governments.

There are certain challenges such as low attendance of staff, supply chain disruptions, significantly higher raw material and freight costs etc. which are impacting the company’s business being softer than normal.

All its offices 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.

“We have been working closely with all our stakeholders including various authorities, to ensure undisrupted supply of medicines. Sufficient inventory is maintained to meet the patient requirements both at the company level and at channel level.”

From operational perspective, company has discharged all its obligations in full on payroll (including contractual workers), statutory payments and its creditors in the regular course of business. The company does not foresee any material impact on the business due to non-fulfillment of the obligations by any party.

There is no impact on capital and financial resources of the company. The company is debt free and carried cash and cash equivalents which can meet its requirement for next few quarters.

Company continues to adequately maintain all internal financial and reporting controls and none of our assets have been impacted or impaired as a result of the pandemic.

It has committed Rs7cr, including Rs1cr contributed by its employees from their salary, to fight Covid-19 pandemic. Out of this, Rs2cr was directly contributed to Prime Minister CARES Fund and balance was spent on providing relief material to various authorities and affected people.

Ajanta Pharma Ltd is currently trading at Rs1,499.35, up by Rs1.25 or 0.08% from its previous closing of Rs1,498.10 on the BSE.

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