Chemical
Revenue and profitability to be impacted due to COVID-19 says Mangalam Organics
The COVID-19 lockdown will result in low sales volumes in Q1 FY21. Even revenue and profitability will be impacted in Q1 FY21 in line with the fall in sales volumes along with future developments under this situation.
- By Pravin Prashant
| June 10, 2020
Pravin Prashant
Revenue and profitability for the coming quarter will be impacted for Mangalam Organics Limited (MIL) since a major part of the quarter was lost under lockdown and the company received permission to operate on a limited scale.
The COVID-19 lockdown will result in low sales volumes in Q1 FY21. Even revenue and profitability will be impacted in Q1 FY21 in line with the fall in sales volumes along with future developments under this situation.
The company is constantly in touch with suppliers to bring the supply chain to its normal. The company is also closely working with the suppliers to ensure optimal utilisation of limited capacity.
In the current scenario the demand continues to be at a slower pace however, the company is positive and hopes that it will get normalized as and when the lockdown is lifted.
The liquidity position of the company is stable and is being maintained to meet its commitments. Since, the company is having a comfortable liquidity position therefore the company is servicing its debt and other financial obligations in a timely manner.
The future impact of the pandemic on the operations of the company can’t be gauged with certainty as the same hinges upon future development, the government's response to the situation to mitigate or contain its impact on the economies and the probable medical treatment discovery however, the company is confident about adapting to the changing business environment.
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