After almost seven years, Srikalahasthi Pipes Ltd. (SPL), formerly Lanco Industries, has posted a loss for the first quarter ended June 2020 following COVID-19-led lockdown of its manufacturing plant at Srikalahasti in Andhra Pradesh.
Standalone net loss for the quarter was ₹8 crore. The company had posted a net profit of ₹33 crore in the year-earlier period. Revenue from operations dropped to ₹204 crore from ₹361 crore.
“Due to the pandemic, the plant was shut down for the entire April, 2020,” said G.S. Rathi, whole-time director, SPL, told The Hindu.
“Though production started during the first week of May, the plant is yet to operate at full capacity. Production is being ramped up gradually and we are hopeful that normal working is likely to be restored by the end of second quarter,” he added.
“April was a complete washout,” he said. “The production of ductile iron pipes during the quarter was 26,431 tonnes against 65,518 tonnes in the corresponding year-earlier quarter. We have a healthy order book of three lakh tonnes that would keep us going for 10 months,” he added.
Considering the continued focus on implementation of water supply projects and focus of the Central government on rural water supply and other schemes to provide water to every household, the company is hopeful of maintaining its growth in future, he said.
