Sports equipment maker Cosco (India) Ltd on Thursday said the COVID-19 pandemic has affected the company”s business and it expects normalcy in operations only after the second quarter of this fiscal.
In a regulatory filing disclosing the impact of COVID-19, the company said it has adequate liquidity and is servicing its debt and other financial obligations on time.
The company”s manufacturing unit at Gurugram had remained closed from March 23 to April 26, due to the nationwide lockdown but restarted production from April 27, with 30 per cent workforce.
“COVID-19 pandemic has affected the business of the company. Sale during the April month of current financial year was nil. However, after the relaxation in lockdown and restart of business operations, the sales are slowly and gradually scaling up,” it said.
Stating that these are the early days and the company is not in a position to gauge with certainty the future impact of the pandemic on operations, Cosco (India) said it “expects normalcy to be achieved only after second quarter. We do hope the business situation should normalize by end of second quarter.”
Commenting on impact of the health crisis on its profitability, the company said, “during the current period profitability will remain under pressure.”
It, however, said it has enough liquidity due to adequate banking limits being in place and it doesn”t have term loan funding from banks/financial and other financing Institutions.
Cosco India further said it is availing working capital limits from arrangements with banks as per bankers funding norms. It is also having comfortable liquidity position and is servicing its debt and other financial obligations timely.