Uncertainty continues due to lockdown in various places: Kirloskar Electric

Kirloskar Electric Company on Monday said uncertainty in its operations on account of Covid-19 pandemic continues due to lockdown in various places.

In a regulatory filing disclosing the impact of the pandemic on its operations, the company said that with progressive easing of lockdown restrictions from May 3, 2020 and further permissions and relaxations, its operations have started in phased manner.

The company said the lockdown affected its sales to the extent of Rs 18 crore in March. However, its operations have now resumed at various manufacturing locations and offices.

"However, there were no operations in April 2020 due to the lockdown and sanitisation of our works. The uncertainty on account of Covid-19 continues due to the lockdown in various places," Kirloskar Electric Co said.

On impact of pandemic on its profitability, the company said it depends "on complete lifting of lockdown and other restrictions imposed on Covid-19 since materials are supposed to flow from suppliers situated at pan Asia and finished goods required to moved across pan India,"

As far as liquidity position is concerned, Kirloskar Electric Co said considering the present position, it "does not foresee any adverse impact on its ability to meet its liabilities as and when they fall due, unless otherwise the lockdown continues which is uncertain".

Commenting on the impact of the health crisis on its ability to service debt and other financing arrangements, the company said it is "likely to have material impact however the company is planning all its resources to honour its obligations. The company believes that Covid-19 is not likely to have any material impact on its ability to service its debt or other obligations."

The company, which is one of the leading Indian electrical firms producing motors, generators, transformer and other electronic equipment, also said there is disruption in supply chain as "certain vendors are situated in contaminated zones across India."

"However, if lockdown is lifted in the near future there will be not significant impact," it added.