Lovable Lingerie surges 4% despite exposure to darker side of Covid-19 crisis

The company hopes, the setback in demand is temporary phenomenon and is expected improve partially in Q2 and substantially improve in subsequent quarters.

Aug 05, 2020 09:08 IST India Infoline News Service

Lovable Lingerie Limited informed the exchanges Tuesday that while Q1FY21 revenues and profitability will be impacted, the company expects to recover the lost ground in the remaining quarters.

The company has adequate resources to maintain its liquidity, however during the lockdown, cash flow was disrupted due to lower collections and fixed expenses commitments.

There was disruption on supply chain during lockdown. The company is actively working with its vendors and logistics provider for ensuring seamless supply of raw material and dispatches of finished goods.

The company hopes, the setback in demand is temporary phenomenon and is expected improve partially in Q2 and substantially improve in subsequent quarters.

Lovable Lingerie Ltd is currently trading at Rs51.40, up by Rs2.05 or 4.15% from its previous closing of Rs49.35 on the BSE.

The company's manufacturing facilities and offices at various locations remained closed temporarily from March 19, 2020 due to lockdown. The company plans to resume partial operations in a phased manner as per the extant guidelines issued by the Government of India, State Govemment and Local Authority.

“We are adhering to the health and safety guidelines prescribed by the Govt., at the workplace, to prevent the spread of Covid-19 pandemic. The Company is taking utmost care of its staff and work force like sanitization, social distancing, mandatory mask wearing and maintaining proper hygiene, etc.,” the company said.

It further added “We have resumed sales activities in June. The response from the market gives confidence. As restrictions get lifted in the market, we expect to get back the momentum and accelerate in  the coming quarters.”

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