Schaeffler India lost 4.58% to Rs 3447.65 after the company reported a net loss of Rs 42.47 crore in Q2 June 2020 as against a net profit of Rs 82.48 crore in Q2 June 2019.
Net sales declined 60.7% year-on-year (YoY) to Rs 438.88 crore during the quarter. Pre-tax loss in Q2 June 2020 stood at Rs 56.63 crore as compared to a pre-tax profit of Rs 132.55 crore in Q2 June 2019.
The company wrote back current taxes to the tune of Rs 8.95 crore in the second quarter. It had incurred current tax expenses of Rs 53.33 crore in the corresponding period last year.
Commenting on the results and financial performance of the company, Harsha Kadam, managing director, said, "The economy and market has just survived a high magnitude pandemic effect. After a full month of lockdown in April, and a staggered resumption of operational activity in May and June, we could manage to curtail our effective production loss to 52 days during the quarter as against a prolonged nationwide lockdown . This impacted the operational performance significantly and thereby resulted into a loss situation during the quarter.
While it is not possible to predict normalization of market and economy, our efforts are aimed towards responding to crisis with agility and ensuring business continuity without losing sight of the future. We have managed to weather the storm and demonstrated that our fundanmentals are strong. While slow demand still continues, we are looking at a better H2 2020 against the challenges ahead."
Schaeffler India manufactures a vast range of ball bearings, engine and powertrain components and a wide range of clutches and hydraulic clutch release systems. The company has the largest after-market networks serving the industrial and automotive customers.
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