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Last Updated : Jun 12, 2020 06:17 PM IST | Source: PTI

MRF Ltd expects Q1 financials to be impacted due to COVID-19 pandemic

Stating that the plants received permissions for resuming partial operations with restricted manpower, the company said based on easing of restrictions sales offices and godowns began operations in a limited manner.

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Tyre major MRF Ltd on Friday said it expects that the financial results for the current quarter would be adversely impacted following the COVID-19 enforced lockdown on its operations.

In a BSE filing about the impact of the pandemic on its business, the tyre manufacturer said it expects demand to be less than normal while availability of contract labour may pose 'some challenges.' "There could also be challenges faced with regard to availability of raw materials because of issues faced by vendors," MRF Ltd said.

Stating that the plants received permissions for resuming partial operations with restricted manpower, the company said based on easing of restrictions sales offices and godowns began operations in a limited manner.

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However, operations were hampered because of various requirements imposed by the government for managing COVID-19 like time restriction, ceilings on manpower, occurrence of any COVID-19 cases in district or region.

"Work from home was rolled out wherever feasible and for this purpose necessary infrastructure was provided," it said.

On the company financials, the company said it has a strong 'net worth', low levels of debt and favaourable liquidity position.

"The financial results for Q1 of FY2020-21 will be adversely impacted due to a shutdown period in the quarter.

Howeve, expected financial impact is not ascertainable at this stage."

MRF Ltd said the manufacturing facilities commenced production and the supply chain resumed reaching the products to markets.

"The company's operations are poised to scale up and ensure that the products continue to be made available to our customers," it said.

Noting that the company has a strong net worth, low levels of debt and favourable liquidity position, the company said, "we have also serviced all our debt obligations in a timely manner."

"We do not foresee any incremental risk with regard to our ability to service financial arrangements and recoverability of our assets including inventory," it added.
First Published on Jun 12, 2020 06:15 pm
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