Chemical
Sukhjit Starch & Chemicals: Q1 sales to be impacted
The revenue of Q1 FY2020-21 ending 30th June, 2020 has been badly impacted due to partial running of the operations however it is not quantifiable at this stage. Even profitability is likely to be affected adversely owing to lower capacity utilization.
- By Pravin Prashant
| June 03, 2020
Sukhjit Starch & Chemicals has seen a marginal impact on the operations of the company for the quarter ended March 31, 2020 however sales for the Q1 FY2020-21 will be considerably impacted.
The revenue of Q1 FY2020-21 ending 30th June, 2020 has been badly impacted due to partial running of the operations however it is not quantifiable at this stage. Even profitability is likely to be affected adversely owing to lower capacity utilization.
The company has resumed partial operations at three locations, employing minimum possible manpower and following all SOPs prescribed by the Government of India, concerning the health and safety of workers, cleanliness, fumigation at the workplace with other safety measures.
From mid-May 2020, after some relaxation by the government, the company has increased capacity utilization at three locations while efforts are on to resume operations at the remaining location. Operations at three locations are expected to reach normal levels of capacity utilization during the month of June, 2020 and the remaining location may resume partial operations dming the month.
The company has also raised a long term debt during FY20I8-19 against its expansion plan, which is nearing commissioning shortly at Village Rehana Jattan, Tehsil Phagwara in the state of Punjab. The company also has a comfortable financial position and does not envisage any problem in servicing its long term or short term (working capital) facilities.
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