WABCO India rues almost nil commercial vehicle production in lockdown; stock trades flat

Given the uncertainty in evolution of various factors, the company is fairly confident that over the next 2 or 3 quarters.

Jun 04, 2020 01:06 IST India Infoline News Service

Wabco India
WABCO India Limited informed the exchanges today that it is experiencing the impact of lockdowns induced by the spread of Covid-19 to pandemic levels.

The nationwide lockdown since March resulted in nil to very minimal commercial vehicle (CV) production and hence has an impact on the revenue of the company. It has been gradually opening up its factories and operations within the limits approved by the appropriate governments.

“WABCO India Limited is a leading supplier of technologies and services that improve the safety, efficiency and connectivity of commercial vehicles in India. The business of the company is directly correlated to the commercial vehicle Industry in India. The CV Industry has been witnessing contraction for the large part of FY20 as some events impacted the economy and the industry.”

Given the uncertainty in evolution of various factors, the company is fairly confident that over the next 2 or 3 quarters, economy and the industry will witness gradual increase in activity levels. As the finished good inventories of commercial vehicles are estimated to be low currently, the outlook for volumes is positive. 

The company has its operational locations in areas which are classified as “Red areas”. The company is strictly adhering to the protocols defined by the Government while operating in these locations. Well established and well‐rehearsed safety, social distancing and sanitizing
norms are ensured, it said.

WABCO India Ltd is currently trading at Rs6,885.50, down by Rs0.85 or 0.01% from its previous closing of Rs6,886.35 on the BSE.

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