The company is proactively taking necessary steps for major cost reductions and deferment of overheads and even with these measures Quarter 1 is likely to be a net loss position.
“We have negotiated with landlords for substantial relief on rents and we are working on ways to ratio,” the company said.
At Ethos (KDDL’s subsidiary), there will be a significant impact on the business in the short run due to market slow down, changes in customers’ priorities and lockdown conditions. However the company expects steady recovery in the market when the pandemic subsides.
“We also believe that there will be tremendous opportunities for the company once the situation normalises. The company has proven marketing resources and sales capabilities and has a proven track record of managing many swiss brands exclusively in India. In addition, we also expect a shift in consumer behaviour for luxury goods – from predominantly offline based to online purchasing,” company said.
The company claims to have probably the most advanced digital communication and e-commerce capabilities in the country for any luxury product. The company will be well positioned to leverage these capabilities and increase its market share substantially.
KDDL Ltd is currently trading at Rs127 down by Rs0 or 0% from its previous closing of Rs127 on the BSE.