Tube Investments of India announces financial results of Q1
Reports loss of Rs. 69 Crore
The Board of Directors of Tube Investments of India (TII) met and approved the financial results for the Quarter ended 30th June 2020.
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 manufacturing plants situated across various locations of the Country had to be shut down or were disrupted from 23rd March 2020 onwards.
With the easing in the lockdown/curfew and the Governments permitting operations to be resumed with necessary permission from the local authorities, the Company has resumed operations from end April 2020 onwards, in a partial manner.
The restrictions have had a significant impact on our operational and financial performance in the quarter. Our revenue for the month of April was virtually nil. In May, we began operations, but at a very low level of capacity utilization. In June, capacity utilization across our system reached around 50%.
Standalone Results for the quarter
• Revenue of Rs.379 Cr in the quarter compared with Rs.1252 Cr in Q1 of last year.
• The company reported a loss of (before exceptional items) Rs. 69 Cr as compared to profit of Rs.107 Cr in Q1 of last year. During the quarter, the Company implemented a voluntary retirement scheme at a cost of Rs.8 Cr. and the same was considered as exceptional item resulting in loss before tax (after exceptional items) of Rs.77 Cr.
• The net debt of the company has reduced to Rs.101 Cr as compared to Rs.149 Cr as of March 31, 2020.