NE BUSINESS BUREAU
CHENNAI, JULY 26
Manufacturer of gears and gear products, Shanthi Gears recorded net loss at Rs 3.58 crore for the quarter ending June 30, 2020 due to COVID-19 enforced lockdown impacting operations and revenues, according to a release.
The Tamil Nadu-based firm, part of the diversified conglomerate Murugappa Group, had reported profit after tax (PAT) at Rs 9.45 crore during corresponding quarter previous year.
For the year ending March 31, 2020 profit after tax was at Rs 25.19 crore, it said in a BSE filing.
Total income for the April-June quarter dived to Rs 26.93 crore from Rs 72.67 crore registered in the same quarter last fiscal.
For the year ending March 31, 2020, total income stood at Rs 248.82 crore.
Shanthi Gears said the COVID-19 pandemic has affected its regular operations.
The company has considered the possible effects that may result from the pandemic on carrying amounts of property, plant and equipment, investments, inventories, the firm said in another statement.
The company has evaluated its liquidity position, recoverability of assets and based on current estimates, it expects the carrying amount of these assets would be ”recovered”.
Shanthi Gears said the company resumed operations in the middle of the first quarter and the revenue was affected due COVID-19 pandemic resulting in a “net loss”.
“..there is a progressive improvement in the business during the quarter and resulted in profit in June 2020,” the company said.
The company received orders worth Rs 40 crore during the quarter ending June 30, 2020 as against Rs 72 crore a year ago due to ”sluggish demand” following COVID-19 enforced lockdown.
Noting that it resumed operations from the middle of April-June 2020 quarter, the firm said the ensuing restrictions have had a significant impact on the operational and financial performance during the quarter under review.
“Our revenue and profitability for the quarter were significantly impacted as compared to the same quarter last year,” the company said.
