“COVID-19” crisis: Manaksia Aluminium in India anticipates minor impact on Q1 FY21 profitability

The flagship company of Manaksia Group, Manaksia Aluminium Company Limited informed the bourses on 16^th July’20 that profitability for the first quarter of FY21 will have a minor impact and the company will focus to return to a profitable level from Q2 onwards.

The company is reconditioning its debts regularly and meeting financial commitments. There is no significant change in the value of current and non-current assets of the company due to Covid-19.

The supply chain of the company was severely impacted during the initial two months of the lockdown but it is now regaining and it expects 100% restoration of a supply chain with in the next two months.

The company has requisite financial resources to cover its capital requirements. However, the company has applied for COVID-19 related funding facility as offered by its respective bankers. It has executed cost control measures to reduce fixed cost and preserve cash to the best possible extent.

The company stated: “Domestic demand for Aluminium products has dropped due to the nationwide lockdown and slowdown of the economy. We expect demand to rise in the next six months as the Government increases its spending on infrastructure and as focuses on MAKE IN INDIA.”

“Due to the countrywide lockdown imposed to contain the spread of Covid-19 the company continued its operations at its manufacturing facility at Haldia after getting approval District Magistrates (DMs) after maintaining social distancing norms with minimum manpower. Work from home (WFH) policy was successfully implemented in March 2020 for all administrative staff.”

“Manufacturing operations and sales have been hampered due to the lockdown. Strict Social distancing norms and precautionary measures have been implemented at our manufacturing facility and office as per the directives of State Government and Central Government guideline.”