AksharChem India Ltd reported a dip in its first quarter sales and net profit due to lockdown measures caused by Covid-19 pandemic which resulted in slow volume uptake during the said quarter.

 

Company's sales dropped by 22.63% YoY and stood at Rs 54.22 crore from Rs. 70.08 crore in June 2019.

 

Net profit also fell by 62.31% YoY and reached Rs. 2.26 crore from Rs. 5.99 crore in June 2019.

 

EBITDA stood at Rs. 4.91 crore in June 2020 down 27.9% from Rs. 6.81 crore in June 2019.

 

The outbreak of Covid-19) globally and its declaration as global pandemic, the Government of India declared lockdown on March 24, 2020, which led to temporary suspension of operations of the company and has impacted the overall business activities of the company. The manufacturing facilities of the company commenced operations from fourth week of April 2020 after obtaining permissions from the appropriate Government authorities and adhering to prescribed guidelines issued by Government oflndia. The results for the quarter are therefore not comparable with those for the previous quarters. While there is no material impact on the carrying amounts of assets of the company, considering the uncertainties associated with COVID-19, the company will continue to closely monitor any material changes to future economic conditions, stated the company in its filing to exchanges.