IG Petrochemicals stock slips 2% as Covid-19 impacts revenue, profitability

The company had to temporarily suspend operations at its plants situated at Taloja, Navi Mumbai due to lockdown.

Jun 25, 2020 11:06 IST India Infoline News Service

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Navi Mumbai based IG Petrochemicals Limited (IGPL) informed the exchanges Wednesday that since there has been a national lockdown due to Covid-19 in the months of April and May, the revenues and profitability of the business have been impacted.

Our facilities have resumed operations and we are hopeful that the business environment improves and we get back to normalcy in the second quarter. the company said.

“The World Health Organisation declared Covid-19 as a global pandemic on March 11, 2020 and the Government of India acted swiftly and took a major step to impose a nationwide lockdown from March 24, 2020 to control and the spread of the virus. This has resulted in complete halt to the economic and financial activities disrupting every industry, function, and geography,” company said.

Post Government’s directives, the company had to temporarily suspend operations at its plants situated at Taloja, Navi Mumbai due to lockdown. After all regulatory permissions, the company saw partial resumption of production at its plants in the second half of April 2020 albeit at lower capacities due to lockdown. The company has been gradually increasing its capacity utilisation.

Since this situation is exceptional and changing dynamically, the company is not able to gauge with certainty, the future impact on its operations. However, the company is confident about adapting to the changing business environment and respond suitably to fulfill the needs of its customers.

I G Petrochemicals Ltd is currently trading at Rs147 down by Rs3.05 or 2.03% from its previous closing of Rs150.05 on the BSE.

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