Covid-19 affects DIC India's Q1 performance, Q2 also likely to be impacted

Sale of Newspaper got restricted in June ended quarter as the demand for newspaper went down significantly with no or low off take from households.

Aug 10, 2020 09:08 IST India Infoline News Service

DIC India Limited intimated the exchanges Friday that overall, the Covid-19 pandemic affected the performance of the company in June quarter and likely to affect the September quarter as well.

The company mainly caters to Newspaper and Packaging sector, which are considered in essential category during Covid-19 lockdown and with necessary approval from the respective State Governments, the company could start limited operation from its factories and warehouse initially which was scaled up with easing of restrictions.

In the June quarter, the sale was lower than normal with only the Packaging sector driving the sales. Sale of Newspaper got restricted as the demand for newspaper went down significantly with no or low off take from households.

DIC India Ltd is currently trading at 355.65, up 8.30 or 2.39% from its previous closing of Rs347.35 on the BSE.

“Our export shipment to Bangladesh got stuck at Customs for almost two months due to closure of the border. This has started from June onwards. The borrowing capacity is sufficient to meet our obligation,” the company said.

The company’s manufacturing operations resumed in early April, with factories opening up in phases, as and when the exemptions and approvals were received. The plants were operating with limited capacity. The situation further eased in May end consequent to the relaxations given by the Government. At present, although running of the operations has improved but it is yet to reach full capacity.

In April, the restriction on cargo movement and delayed clearance at Customs resulted in intermittent disruptions. However overall supply chain has since improved gradually.

During the lockdown except workmen and some management staff at factories, all other company employees have been working from home. Warehouses in non-containment zones are operating as per the approvals of the local authorities.

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