Covid-19 impact: Timex Group India Q1 loss widens to Rs 12.42 cr

Watch maker Timex Group India on Thursday reported widening of net loss to Rs 12.42 crore in the first quarter ended on June 30, 2020, hit hard by the coronavirus pandemic.

The company had posted a net loss of Rs 7 crore in the same quarter last fiscal, Timex Group India said in a regulatory filing.

Revenue from operations during the quarter under review stood at Rs 6.81 crore. It was at Rs 61.78 crore in the year-ago period, it added.

Despite the easing of lockdown restrictions in different parts of the country, the operations of the company have been adversely impacted during the period, Timex Group India said.

The company said its accumulated losses as on June 30, 2020, are at Rs 81.55 crore. The losses were at Rs 69.03 crore on March 31, 2020 and it has resulted in significant erosion of the equity of the company.

"The above conditions indicate the existence of material uncertainty that may raise significant doubt about the ability of the company to continue as a going concern, and therefore it may be unable to realise its assets and discharge its liabilities in the normal course of business.

"As per current business plan approved by the Board of Directors, taking into considerations the current economic condition, the management believes that the funding requirements of the company will be met through funds from operations and bank borrowings of up to Rs 35.59 crore, which have been guaranteed by Tanager Group B.V. (formerly known as Timex Group B.V.), the Intermediate Holding Company.

"The company has been delivering growth in revenue with improved operational efficiency in the past and expects growth in its operations in future post-COVID-19 situations with continuous improvement in the operational efficiency," it added.