Thirumalai Chemicals Ltd posted a dip in sales as well as profits wherein the company's net profit declined by 86.29% to Rs 2.43 crore in the quarter ended March 2020 as against Rs 17.73 crore in March 2019 quarter. The company's sales also declined 10.88% to Rs 281.37 crore in the year ended March 2020 as against Rs 315.71 crore in March 2019 quarter.

 

For the full year, net profit declined 79.60% to Rs 23.17 crore in the year ended March 2020 as against Rs 113.57 crore during the previous year ended March 2019. Sales declined 13.98% to Rs 1084.79 crore in the year ended March 2020 as against Rs 1261.04 crore in March 2019. 

 

Regading COVID-19 impact, the company’s profitability depends on the sales volumes and price realisation of its products as well as the movement in the cost of its major raw materials. The profitability for the year is expected to be reduced due to the Global impact of the pandemic. The company has identified areas of cost saving and control. The proposed savings due to identified areas of cost reduction will help in strengthening the profitability. Efforts will be on in pursuing profitable revenue mix between domestic and exports businesses. 

 

The company has mapped its critical processes/ sub processes and instituted automated and manual workflow controls against each of these and also developed exception reports for top management to review. Financial controls, reporting and oversight have been tightened in view of the global crises, and have proved effective.

 

There is expected to be an impact on the demand for the company’s products during the year due to the COVID pandemic. However the company does not foresee any adverse impact on its supply chain system.The company is taking efforts to minimise this impact and is working with its customers to boost demand. 

 

The company is also actively working with the various Government agencies for encouraging domestic manufacturing under the Atma Nirbhar scheme.