Tyre major Ceat Ltd on Wednesday reported a consolidated net loss of Rs 35.24 crore for the first quarter ended June 30 hit hard by the coronavirus pandemic. The company had posted a consolidated net profit of Rs 82.2 crore in the same period last fiscal, Ceat Ltd said in a regulatory filing.
Revenue from operations during the quarter under review stood at Rs 1,120.16 crore as against Rs 1,752.10 crore in the year-ago quarter.
Ceat Ltd said the group's manufacturing facilities and operations were shut down following the nationwide lockdown announced on March 24, 2020.
"During the quarter, the group has resumed its manufacturing facilities and is currently in the process of further scaling up its operations. Further, since the lockdown was still in force for a significant period of the current quarter, the group's operations were impacted," it said.
The group has recognized Rs 2.58 crore for the quarter ended June 30, 2020, towards unusable semi-furnished inventory and raw materials due to abrupt stoppage of production facilities, it said.
"Further, borrowing costs not capitalised due to temporary suspension related to ongoing capital projects, contract manpower cost and detention charges (for the period attributable to COVID-19 aggregate Rs 17.53 crore for the quarter ended June 30,2020...," the company said.
Commenting on the results, Ceat Ltd MD Anant Goenka said,"Our primary area of focus over the last quarter was health and safety of our people, our customers, partners and the community. We closely monitored our cash flows and costs and were able to see positive results."
On the outlook, he said,"Looking ahead we see a path of recovery backed by easing of restrictions and an uptick in the market. We have resumed operations at all our factories and are making concerted efforts towards ensuring we are ready as the demand picks up, while successfully transitioning into a new work environment."