Rallis India talks about Covid-19 impact; optimistic on biz ahead; stock surges 7%
−− Rallis witnessed overall disruption in logistics and supply chain from the last week of March 2020.
Jun. 9, 2020
While intimating about Covid-19 impact to exchanges, Rallis India on Monday said the operations were disrupted at most of its manufacturing units ever since the lockdown was imposed. This resulted in overall disruption in logistics and supply chain from the last week of March 2020.
Thereby, Rallis stated that they were unable to dispatch goods worth approximately Rs16cr to the domestic market. Disruptions in transportation also delayed the shipment of approximately Rs53cr to international customers.
Notably, Rallis has already mentioned about the delayed dispatches in the financial results submitted to the Stock Exchanges for the said period.
While the company has resumed business from April 27, 2020, Rallis mentioned that the plants were able to coincide the lockdown period with the planned annual maintenance shutdown period to some extent, thereby minimising the production loss. Due to the migration of some of the workforce, the activities are yet to reach the optimum scale.
However, Rallis ensured that the company will meet its immediate requirement for supplies to the trade and its obligation under the existing contract/arrangements and at present, the Company does not see any material impact on the business in case of non-fulfilment of any contractual obligation.
Further, all CAPEX programs have been re-evaluated by Rallis to keep the long term strategic objectives in focus. Rallis said, "The Company has enough liquidity to meet its obligation and is constantly working with its suppliers and business partners to ensure smooth operations."
Post Covid-19 impact announcement, Rallis stock surged to nearly 7% on Sensex, ending at Rs252 per piece.
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