Alkali Metals slumps 5.5% after estimating harsh impact due to Covid-19

The sudden Imposition of nationwide lockdown led to disruptions in supply chain, income generation and availability of manpower.

Jun 12, 2020 09:06 IST India Infoline News Service

Alkali Metals Limited informed the exchanges Thursday that there's no readily available solution to the current situation due to Covid-19, and it's certainly not business as usual.

Keeping the various financial support initiatives provided by government and banks, the company is optimistic for things to improve. However, it admitted that if the current situation prevails, then it's going to be challenging.

The company saw a spike in sales in the month of May (124%) compared to 12% in April and 39% in March during the lockdown affected months. However, the sale during the month of May'20 was a stock sale of previous months deferred orders.

“The Covid-19 pandemic caused a widespread concern and economic hardship to businesses and communities across the globe. The fast moving and unknown variables hit the business community so hard that the contingency plans too failed to address the slide,” company said.

The sudden Imposition of nationwide lockdown led to disruptions in supply chain, income generation and availability of manpower. The combined result for the company was very harsh and had a very significant downward impact.

Since it became obvious that the pandemic is a real threat to the human resource the company had taken up initiatives at all our factory units and admin office premises during first week of March 2020 like seminar by doctors on the Covid-19 Do's and Don'ts, providing face masks and implementation of work from home for majority of the admin staff.

Alkali Metals Ltd is currently trading at Rs44.40, down by Rs2.6 or 5.53% from its previous closing of Rs47 on the BSE.

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