DFM Foods feels significant short-term impact of Covid-19; stock ends ~2% higher

The company will draw up plans to cut non-essential costs and conserve cash in the disruption.

Jun 04, 2020 03:06 IST India Infoline News Service

DFM Foods
DFM Foods Ltd informed the exchanges that the disruption caused by Covid-19 and the resultant lockdown has impacted performance, profitability and cash flows.

It feels the operations will be significantly impacted in the short run. The supply chain will see a downside trend and limited workforce will be an issue in the short run. The company will draw up plans to cut non-essential costs and conserve cash in the disruption.

“There are no significant liquidity concerns however due to reduced level of operations it will be impacted for the short term. As per RBI guidelines, the company has availed the moratorium from banks for short term. After assessing the finance requirement will start servicing its debt and financing arrangements.”

The company's manufacturing facility at Greater Noida (UP) remained shut from March 22, 2020 due to the Covid-19 outbreak. Its manufacturing plant at Ghaziabad (UP) was also shut for few days in March however it was re-opened after getting the requisite approval from the local authorities.

DFM Foods Ltd ended at Rs218.20, up by Rs4 or 1.87% from its previous closing of Rs214.20 on the BSE.

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