Manaksia Aluminium expects little impact of Covid-19 on Q1FY21 profitability

The company hopes Aluminium demand to rise in the next six months after a slowdown in lockdown.

Jul 16, 2020 04:07 IST India Infoline News Service

Manaksia Aluminium Company Limited informed the exchanges Thursday that profitability for the first quarter of FY21 will be little impacted and we shall strive to return to profitable level from Q2 onwards.

The company is servicing its debts regularly and meeting financial commitments. There is no significant change in the value of current and non-current assets of the company due to Covid-19.

The supply chain of the company was impacted severely during the initial two months of the lockdown but has since recovered and it expects 100% restoration of a supply chain with in the next two months.

The company has adequate financial resources to meet its capital requirements. The company has applied for Covid-19 related funding facility as offered by its respective bankers. It has implemented cost control measures to reduce fixed cost and conserve cash to the best
possible extent.

“Domestic demand for Aluminium products has dropped due to the nationwide lockdown and slowdown of the economy. We expect demand to rise in the next six months as the Government increases its spend on infrastructure and as focuses on MAKE IN INDIA,” company said.

Due to the countrywide lockdown imposed to contain the spread of Covid-19 the company continued its operations at its manufacturing facility at Haldia after getting approval District Magistrates (DMs) after maintaining social distancing norms with minimum man power. Work from home (WFH) policy was successfully implemented in March 2020 for all administrative staff, the company said.

Manufacturing operations and sales have been hampered due to the lockdown. Strict Social distancing norms and precautionary measures have been implemented at our manufacturing facility and office as per the directives of State Government and Central Government guideline.

Manaksia Aluminium Company trade ended at Rs8.66, down Rs0.18 or 2.04% from its previous closing of Rs8.84 on the BSE.

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