Textiles manufacturer GHCL net profit falls 29% to Rs 85 cr in March quarter; lockdown impacts company's business
GHCL Ltd Managing Director R S Jalan said the current COVID-19 pandemic caused major disruptions in various business segments.
New Delhi: Chemicals and textiles manufacturer GHCL Ltd on Wednesday reported a 28.94 percent decline in consolidated net profit to Rs 84.86 crore in the fourth quarter ended 31 March, on account of lower sales.
The company had posted a consolidated net profit of Rs 119.43 crore in the corresponding period a year ago, GHCL Ltd said in a regulatory filing.
Revenue from operations in the fourth quarter stood at Rs 750.07 crore as against Rs 907.86 crore in the corresponding period in the previous financial year, it added.
For full fiscal 2019-20, the company said its consolidated net profit stood at Rs 396.62 crore as against Rs 350.58 crore in the previous financial year.
For entire 2019-20, revenue from operations stood at Rs 3,305.12 crore as compared to Rs 3,341.32 crore in 2018-19, it added.
GHCL said the nationwide lockdown from on 25 March led to temporary suspension of operations of the company and impacted its overall business activities.
On account of this, management has prepared future cash flow projections and also assessed the recoverability of its assets and factored assumptions used in the annual impairment assessment of its cash generating units, using various internal and external information up-to the date of approval of these financial results.
"The company has on a prudent basis charged an additional one-time cost of Rs 20 crore to the statement of profit and loss and in the carrying value of the assets," the filing said.
Commenting on the business performance, GHCL Ltd Managing Director RS Jalan said the current COVID-19 pandemic caused major disruptions in various business segments.
"At GHCL, we complied with all the regulations notified by the government from time to time. We had taken the initiative of ''work from home'' at our offices and the production facilities also remained closed for a major period of time thus impacting production and sales," he said.
He further said that the nation is passing through a tough time currently. "However, we believe that this disruption will create opportunities too. We assure our stakeholders that we will be agile and focused towards these opportunities."
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