Sangam India surges ~6% despite feeling the Covid-19 pinch

The company's manufacturing facilities remained shut from March 22, 2020, due to lockdown and partially re-opened from April 28, 2020.

Jun 08, 2020 10:06 IST India Infoline News Service

Sangam (India)
Limited informed the exchanges Saturday that its revenues and profitability are likely to be adversely impacted during the first quarter due to the lockdown. However, it is expected to gradually improve from the second quarter.

The company's manufacturing facilities remained shut from March 22, 2020, due to lockdown and partially re-opened from April 28 onwards on a gradual basis.

“We have lost production during complete lockdown for the period over a month that reduces our production capacity utilization by 10% for the FY21. We have no sales in the month of April 2020. After having re-started the production activities from last week of April 2020, the company Is ramping up the production capacity utilization gradually.”

The company feels that in light of the unprecedented situation owing to the spread of Covid-19, it will take another few months to utilize the production capacity at optimum level.

“As per the current estimate we feel Covid-19 will have around 30% Impact on business operation for FY20-21, assuming things get normalize and start improving progressively in near future and will not have any major setback going forward,” company said.

Sangam (India) Ltd is currently trading at Rs48.60, up by Rs2.7 or 5.88% from its previous closing of Rs45.90 on the BSE.

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