Tube Investments of India Ltd. (TIIL) slipped into the red during the first quarter ended June 2020, clocking a loss of ₹59 crore as the COVID-19 lockdown curtailed operations.
The Murugappa Group firm recorded a standalone net profit of ₹88 crore in the year-earlier period.
The first quarter results included an exceptional item of ₹8 crore concerning employees’ voluntary retirement scheme and ₹18.54 crore in deferred taxes. Revenue from operations contracted to ₹361 crore (₹1,183 crore).
Consequent to the outbreak of the COVID-19 pandemic and the lockdown/curfew introduced by the Central and State governments, the operations in the Company’s at manufacturing plants located situated across the various locations of the country had to be shut down or were disrupted from March 23rd March 2020 onwards, TIIL said in a regulatory filing.
“Our revenue for the month of April was virtually nil,” the company said. “In May, we began operations, but at a very low level of capacity utilisation. In June, capacity utilisation across our system reached around 50%. Net debt reduced to ₹101 crore from ₹149 crore as of March 31, 2020,” it added.
The engineering division’s revenue for the quarter declined to ₹164 crore (₹657 crore) and that of the cycles and accessories unit to ₹100 crore (₹290 crore). Revenue of metal-formed products division stood at ₹127 crore (₹350 crore)
