Technocraft Industries smells Covid-19 impact on first quarter; stock ends lower

The company hopes that overall business situation could normalize from the third quarter.

Jul 22, 2020 04:07 IST India Infoline News Service

Technocraft Industries
Technocraft Industries (India) Limited informed the exchanges Wednesday that in view of prevailing Covid-19 situation and partial closure of manufacturing facilities in this period, the company's revenue and profitability for the first quarter of FY21 are likely to be impacted. The company hopes that the overall business situation could normalize from the third quarter.

The company’s capital and Banking facilities remain intact. It has sufficient Banking limits, cash and cash equivalents. There are no liquidity concerns. However, the company is witnessing delay in the receivable collection from customers due to an exceptional situation. The company is regularly following up with customers for recovery of receivables and does not feel that there would be bad debts.

The company's trade on Wednesday ended at Rs227.00 down Rs12.55 or 5.24% from its previous closing of Rs239.55 on the BSE.

Following Government directives of lockdown, the company's manufacturing facilities for various divisions were shut from March 22, 2020. The company obtained permissions to gradually re-start the operations on various dates and also assessed the situation on the ground and re-started the operations gradually.

Since re-opening of our plants, the company has successfully been ramping up capacity across various plants. The company did not re-start one of the Units of Grey Yarn manufacturing however other Units of Yarn had re-started. Similarly the company also did not re-start the Captive Power Plant which supplied power so generated to its various manufacturing units, in view of lower requirement of power and power is now being taken by these manufacturing units from State Grid.

The company has sufficient raw materials and therefore has witnessed no disruption in manufacturing on account of lack of availability of raw materials.

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