Chemical
Praj Industries faces adverse impact on FY21 performance due to lockdown
Company taking appropriate measures to reduce its fixed costs and conserve cash.
- By ICN Bureau
| July 25, 2020
Praj Industries Limited believes that the severe countrywide lockdown from end March 2020 will have an adverse impact on the company's revenue and profitability in FY20-21.
The company informed the exchanges recently that to recover with this unprecedented crisis, it has taken appropriate measures to reduce its fixed costs and conserve cash. Based on this, the company feels that it will have adequate financial resources to ensure smooth operations. As on date, the company continues to enjoy its status as a “Debt Free” company.
The nationwide lockdown announced by Central Government from March 23, 2020 led to temporary stoppage of operations resulting in loss of production and invoicing in the last week of March 2020. As the operations were resumed in phased manner, as per directives issued by Central and State Government, the operations during first quarter of Financial Year 2020-21, were also adversely affected, the company said.
With restrictions on resumption of operations, the company made concerted efforts to obtain necessary approvals from Central and State Government and resumed the operations duly adhering to the Guidelines issued by Central, State and Local Government Authorities for Industrial Units and offices.
The company also took considerable efforts to safely mobilize manpower and resume operations as soon as possible. In backdrop of this situation, the company is making all out efforts to execute the orders.
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