MRF Expects Q1 Financials To Be Impacted Due To Covid-19
Published On 19-Jun-2020
The tyre maker also said that the company could face challenges with regards to availability of raw materials because of issues faced by vendors.
Homegrown tyre manufacturer, MRF said that it expects the financial result for the first quarter would be adversely impacted following the COVID-19 enforced lockdown on its operations. In a BSE filing about the impact of the COVID-19 on its business, MRF Tyres said it expects demand to be less than normal while availability of contract labour may pose some challenges.
The tyre maker also said that the company could face challenges with regards to availability of raw materials because of issues faced by vendors.
The company said that the plants have resumed partial operations with restricted manpower and its sales offices and godowns are also beginning to operate in a limited number.
However, operations were hampered because of various requirements imposed by the government for managing COVID-19 like time restriction, ceilings on manpower, occurrence of any COVID-19 cases in district or region, added the company.
"Work from home was rolled out wherever feasible and for this purpose necessary infrastructure was provided," it said.
On the company financial position, MRF said it has a strong net worth, low levels of debt and favaourable liquidity position.
"The financial results for Q1 of FY2020-21 will be adversely impacted due to a shutdown period in the quarter. However, expected financial impact is not ascertainable at this stage.” it added.
Also Read: Covid-19 Crisis: MRF Tyres Partially Resumes Operations
MRF Ltd said the manufacturing facilities commenced production and the supply chain resumed reaching the products to markets.
"The company's operations are poised to scale up and ensure that the products continue to be made available to our customers," it said.
Noting that the company has a strong net worth, low levels of debt and favourable liquidity position, the company said, "we have also serviced all our debt obligations in a timely manner."
"We do not foresee any incremental risk with regard to our ability to service financial arrangements and recoverability of our assets including inventory," it added.
Source: PTI
