Chembond Chemicals Reports Drop in Sales for Q1 FY20-21 – COVID-19

Chembond Chemicals Ltd., a chemical manufacturer based in India announced its results for the first quarter ended June 30, 2020.

The company’s net profit declined 2.2% to Rs 4.03 crores ($0.53 million) for the period ended June 30, 2020 as against net profit of Rs 4.12 crores ($0.55 million) during the prior-year quarter.

Net sales declined 23.8% to Rs 55.25 crores ($7.3 million) during the period ended June 30, 2020 as compared to Rs 72.50 crores ($9.6 million) during the prior-year quarter.

On the impact of the pandemic on its business, Chembond Chemicals in its stock exchange filing said, “COVID-19 has affected business operations of the Group with manufacturing, sales, supply chain, cashflows etc. continuing to be impacted. Plants of the Group operated at below capacity during this quarter. The offices and labs of the Group started operations in line will the Unlock advisory.”

“The uncertainties associated with the situation continue to evolve and the Group is monitoring them closely. Based on the current indicators of future economic conditions, the Group expects to recover the carrying amount of its assets. The impact of COVID-19 on the consolidated financial results may differ from that estimated as at the date of approval of these results. The Group will keen adjusting as called for from time to time to best cushion the adverse impact from this scenario, if any,” it added.