KOCHI: Covid 19 has taken a heavy toll on India’s leading consumer electrical and electronics company, V -Guard Industries Ltd landing the company in one of its worst quarters with its first quarter consolidated net profit nose-diving 93 per cent to Rs3.64 per cent compared with Rs53.03 crore for the same period last year.
The Covid and the consequent months-long lockdown has left the company with a quarterly consolidated revenue of Rs408 crore compared with Rs706.65 crore the company generated for the same period last year, representing an year-on-year decline of 42 per cent.
The company said that owing to nation-wide lockdown in response to the COVID-19 pandemic, revenue for the month of April 2020 was near zero. “Operations resumed in phases from first week of May with complete adherence to the COVID-19 protocols,” it explained.
It further said that during May and June, revenues were 70 per cent and 90 per cent respectively, of the corresponding two months of the previous year, as more markets opened up.
Stating that the company has not resorted to any layoffs or pay cuts, the company statement added that the cost containment measures which have been taken will be continued in the coming quarters as well.
Mithun K Chittilappilly (seen in the picture) , managing director, V-Guard Industries, said that company’s business has been very resilient in facing these extremely challenging times. “While May-June has shown some recovery, we remain cautious as localised lockdowns may cause market closures in different parts of the country from time to time,” he added,
Chittilappilly expressed his concern that the effect of the COVID-19 pandemic is likely to last for a few more months, during which consumer demand for discretionary items will remain subdued.