NEW DELHI, June 4: Force Motors expects the first two quarters of the ongoing fiscal to be severely impacted by the coronavirus pandemic as its revenue and profitability were hit hard during the lockdown induced by the health crisis.
In a regulatory filing disclosing the impact of COVID-19, Force Motors said it has taken cash flow control and overhead control measures to manage operations with daily and weekly review mechanism adopted to review the account receivables and measures taken to control the capital expenditure.
The company said it is now gradually resuming operations, as per customer requirements and demands following relaxation of guidelines by the government. All of its plants and offices in Pune, Chakan, Pithampur and Chennai were closed since March 21 as per government directives of lockdown, which has severely impacted the business of the company.
Commenting on the future impact of COVID-19 on operations, Force Motors said,”During the lockdown period, the revenue and the profitability of the company are adversely impacted. Based on the current demand of the products of the company, it is estimated that first two quarters of financial year 2020-21 will be impacted severely.”
On demand of its products, the company said it has been impacted due to the imposition of the lockdown. However, it is optimistic to gain momentum in the forthcoming quarters of 2020-21.
Force Motors also said it has sufficient credit limits sanctioned by its bankers.
“These credit limits are sufficient to meet the financial requirements of the company,” it said adding it also has the “ability to borrow additional funds, if required in future, based on the performance of its business”. (PTI)
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