GHCL's consolidated net profit dropped 28.9% to Rs 84.86 crore on a 17.4% decline in net sales to Rs 750.07 crore in Q4 March 2020 over Q4 March 2019.
Consolidated profit before tax slumped 51.5% to Rs 88.09 crore in Q4 March 2020 as against Rs 181.67 crore in Q4 March 2019. Current tax expenses tumbled 66.3% to Rs 17.07 crore in Q4 March 2020 over Q4 March 2019.
The company has received an income tax benefit due to which lower tax has been provided for the quarter. In textile segment, there has been a one-time impact of Rs 30 crore on account of COVID-19, forex and potential markdowns and reduction in the value of inventories, investment and receivables. The result was announced at the fag end of market hours yesterday, 20 May 2020.
In compliance with the directives received by the Governemnt of India and in order to limit the spread of novel coronavirus, the management decided to temporarily shutdown its chemical and textiles facilities across all locations. After obtaining the required permissions from concerned government authorities, soda ash plant started in 3rd week of April, while textile units restarted in week of May 2020. The operations will be ramped gradually depending upon the market conditions and demand outlook. In light of the evolving pandemic situation, the company's performance in Q4 FY20/ FY20 may not depict a correct view, and may therefore not give a fair assessment if compared YoY, the company said in its Covid-19 update.
Speaking on the Q4 & FY20 performance, R. S. Jalan, the managing director (MD) of GHC, has said: "The current COVID-19 pandemic has resulted in a major disruption in various business segments. We have received continuous support from our stakeholders including Government agencies and supply chain partners. Whereas the nation is passing through a tough time, this disruption will also create opportunities and GHCL will focus on the same."
GHCL is a diversified group with footprints in chemicals, textiles and consumer products segment.
Shares of GHCL rose 1.68% to Rs 100 on BSE. The stock hovered in the range of Rs 99.05 to Rs 102.25 so far.
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