Busines

Shanthi Gears Q1 dips into red

Shanthi Gears Ltd. (SGL), a subsidiary of Tube Investments of India Ltd., reported a standalone net loss of ₹3.58 crore for the first quarter ended June 2020 as its operations were affected following COVID-19. The company had reported a net profit of ₹9.45 crore in the year-earlier period. During the first quarter, the company had posted a revenue of ₹25 crore against ₹71 crore in the year-earlier period. SGL’s order book shrank to ₹40 crore from ₹72 crore on account of sluggish demand from almost all major user industries due to the pandemic.

“Consequent to the outbreak of the COVID-19 pandemic and the lockdown/curfew introduced by the Central and State governments, the operations at the company’s manufacturing plants had to be shut down or were disrupted from 23rd March 23, 2020 onwards,” said the company in a regulatory filing.

“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 mid Q1. The ensuing restrictions have had a significant impact on our operational and financial performance in the quarter. Our revenue and profitability for the quarter were significantly impacted as compared to the same quarter last year,” it said.

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