CCD promoter's death led to liquidity crisis, impacting Q2 results: Sical

The company has reported a pre-tax loss of Rs 43.19 crore for the quarter ended September 30, 2019, compared with a Rs 7.77-crore profit before tax during the same quarter last year

Gireesh Babu Chennai
V G Siddhartha

V G Siddhartha, Café Coffee Day's founder

The death of Coffee Day Group promoter V G Siddhartha earlier this year created liquidity challenges, impacting the financial performance of group company Sical Logistics in the quarter ended September. The company on Friday reported a loss before tax of Rs 43.19 crore during the quarter, compared to a Rs 7.77-crore profit before tax during the same quarter last year. 
The company said in a press release: "The liquidity challenges arose on account of the demise of our Promoter, V G Siddhartha". 
The results were significantly affected by the liquidity challenges leading to a reduction in revenues during the quarter when compared with the previous one. The operations were heavily affected due to a reduction in volumes, leading to under-absorption of fixed costs. This led to negative earnings before interest, tax, depreciation and amortisation (Ebitda) and a loss th

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First Published: Nov 08 2019 | 9:02 PM IST

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