Motor & General Finance Ltd is currently trading at Rs27.80, up by Rs1.8 or 6.92% from its previous closing of Rs26 on the BSE.
“Our company's main source of revenue is the leasing of the properties. On account of imposition of lockdown starting from March 2020, the payment towards rent has become very slow and it may affect the profitability of the company for the year ending March 31, 2021. We are negotiating with the tenants and emphasizing them to meet their commitments and not to increase the outstanding but start making payment in instalments,” the company said in a release.
The company is taking all the recommended precautions and safeguard measures as per the directives and guidelines issued by the central government and the respective state government(s) from time to time to prevent spreading of COVID-19 Pandemic.
“Once the company finalises the final settlement with the tenants and its impact on the liquidity and profitability will be informed at an appropriate time. Further, as still the effects of pandemic is not yet lighten, future impact on operating results of the company cannot as yet to be reliably ascertained or quantified as the same will be possible only after the lockdown is finally lifted,” it added.
The company is continuously monitoring and assessing the impact of Covid-19 pandemic on the business, turnover, profitability and liquidity position and is taking all the necessary steps. Adverse impact on revenues, profits and resultant cash flow would depend upon containment of the disease, remedial measures taken at a larger level.