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Hinduja flagship firm Ashok Leyland on Thursday said it expects market conditions to remain volatile and challenging due to the coronavirus pandemic.
In a regulatory filing disclosing the impact of Covid-19, the company said that currently, it has enough liquidity and has been tying up both working capital lines and long-term credit lines with various banks.
“Covid-19 impacted the business operations of the company by way of interruption in production, supply chain, manpower, lockdown of production facilities which has, in turn, impacted the sale volumes and, consequently, revenue and market share,” the company said.
It, however, said several measures are being taken to “mitigate substantial negative impact arising out of the (pandemic) including manpower, investment plans and close collaboration with customers, banks /financial institutions, suppliers and employees“.
On the estimation of the future impact of Covid-19 on its operations, Ashok Leyland said, “We expect the market conditions to remain volatile and challenging. However, we remain motivated to build a sustainable future over the long term, through more proactive steps and create sustainable growth.”
The company further said it “currently has enough liquidity and has been tying up both working capital lines and long-term credit lines with various banks“.
The management team is closely monitoring the liquidity position of the company to ensure that it is managed efficiently, it added.
With the lockdown being lifted gradually, the company said it will help in resumption of full operations when the restrictions are fully removed. “This should help in generation of cash from operations. With the current levels of debt and available lines of credit, the company believes it is sufficiently funded to meet all its financial commitments during the year,” the filing said.
Ashok Leyland further said, “The market is expected to revive and demand pick-up to happen in the short term.”
The company said it has resumed operations in its plants across the country during second week of May 2020, after obtaining necessary approvals from the relevant authorities.
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