Transport Corporation of India runs normal show in Covid-19 times

There is uncertainty about time by when business would attain the pre-Covid level of activities.

Jun 30, 2020 11:06 IST India Infoline News Service

Stock Exchange
Transport Corporation of India Limited informed the exchanges Monday that the Covid-19 pandemic driven situation has created disruptions in the business operations of one and all.

Most of its operations in coastal shipping, warehousing and distribution and transportation of essential and nonessentials goods were running during the lockdown period, though with a reduced capacity.

“We experienced issues arising out of stoppage of production at customers, reduction in demand, restrictions on inter-state and intra-state movement of goods and cargo, shortage of labour and drivers etc.

Now with onset of Unlock-1, the situation has started to normalize. However there is uncertainty about time by when business would attain pre-Covid level of activities,” company said.

It further added that the company is in a comfortable liquidity position with adequate banking limits and long-term credit lines in place, and thus, the company did not opt for six months moratorium granted by RBI. The company is AA rated from CRISIL and A1+ rated from ICRA and has ability to raise any additional funds as and when required.

The company has successfully issued Commercial Papers during May and June at extremely attractive rates to meet the funding requirements and made repayments of matured Commercial Papers and EMI of term loans on time.

Any future Impact on revenue, profit and resultant cash flow would depend upon containment of pandemic and revival of overall economic scenario.

The company’s offices, branches and warehouses at various locations are operational in accordance with the guidelines issued by the respective State Governments. The company is following all relevant Government directives and guidelines regarding health and safety of the workforce on resumption of its operational activity and has taken precautionary measures to safeguard health and safety of its employees and other stakeholders at all work places.

Transport Corporation of India Ltd is currently trading at Rs170.20, up by Rs0.8 or 0.47% from its previous closing of Rs169.40 on the BSE.

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