Sudarshan Chemical Industries Limited (SCIL) Rs. 345 crore Capex plan for FY2021 will spillover to FY2022 due to COVID-19 delay and uncertainties says Rajesh Rathi, Managing Director, Sudarshan Chemical Industries Limited. 

 

Speaking at Q1 FY2021 Earnings Conference Call, Rajesh Rathi, Managing Director, Sudarshan Chemical Industries Limited said, "This year we are doing Capex of Rs. 345 crores however we are not exactly determined how much of that Capex will get pushed into the next year as there are several uncertainties." 

 

"One is, when are we able to start those projects again given the manpower situation and whether we are able to ensure complete social distancing where this Capex labour or team does not get mixed up with our regular manufacturing, our whole endeavour is going to be throughout this year, we do not want any more disruptions due to COVID-19 on our manufacturing, so that is the first priority and that is how we will then prioritize the project, so first priority is manufacturing," added Rathi. 

 

Sudarshan Chemical Industries Limited has invested Rs. 255 crore Capex in FY 2020. 

 

Looking at the financial performance for the quarter, on a consolidated basis the total income from operations for Sudarshan Chemical Industries is Rs. 352 crore as compared to Rs. 411 crore for the corresponding period previous year, down 14% on YoY basis. Pigments accounted for 97% of the revenue and was at Rs. 341 crore. The drop in revenue is primarily due to lower number of days operations and running plants at lower utilisation levels.