Varroc Engineering reports of fire at subsidiary; stock down 3.7%

The company further mentioned that the fire incidence took place outside the manufacturing block, which then spread to packaging area and resulted into a fire outbreak.

Feb 18, 2020 06:02 IST India Infoline News Service

Varroc Engineering informed the exchanges that a fire has occurred at Varroc Lighting Systems India Private Limited (Subsidiary of the Company) Plant located at Survey No. 279, Mann, Hinjewadi, Taluka Mulshi, Pune - 411057 (M.S.) on February 18, 2020, at around 3.15 a.m. The Plant manufactures lighting products for four wheelers in India and contributes ~2% to the consolidated revenue of Varroc Engineering Limited.

The stock is trading lower by 3.7% on this news.

The company further mentioned that the fire incidence took place outside the manufacturing block, which then spread to packaging area and resulted into a fire outbreak. There were no human casualties reported. Further, the company is in the process of ascertaining the actual cause of fire and the loss caused by it. Also, adequate steps are being undertaken to ensure customer service at the earliest.

The company informed that this will have no significant impact on the company’s operations. Further, the company has adequate insurance coverage and has informed the insurance company about the incident.

Stock view:
Varroc Engineering Ltd is currently trading at Rs395.25 down by Rs13.7 or 3.35% from its previous closing of Rs408.95 on the BSE.

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