Latest News | Revenues, Profitability Hit Due to Lockdown: Minda Industries
Get latest articles and stories on Latest News at LatestLY. Auto component maker Minda Industries on Thursday said the coronavirus-led nationwide lockdown has significantly impacted its revenues and profitability.
New Delhi, May 28 (PTI) Auto component maker Minda Industries on Thursday said the coronavirus-led nationwide lockdown has significantly impacted its revenues and profitability.
While the restrictions imposed on various activities were necessary to contain the spread, it has significantly impacted the business of the company and its subsidiaries, Minda Industries said in a regulatory filing.
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Consequently, revenues and profitability have been adversely affected, it added.
Elaborating on domestic operations, the company said it has now received approvals to start production at all manufacturing plants with capacity utilisation in the range of 10-20 per cent.
India accounts for more than 82 per cent of the company's overall turnover, it noted.
On international business, the company said production has been significantly reduced across facilities in Spain, Mexico, Vietnam and Indonesia due to government-imposed lockdowns and restrictions.
The company's design and engineering centres in Germany, Spain and Japan have partially resumed operations wherein part of the total number of employees continues to work from home to ensure minimum contact and social distancing, it added.
The overseas facilities are operational with capacity utilisation in the range of 15-20 per cent, which is fluctuating based on customer demand, Minda Industries said.
The company further stated that reverse migration of the migrant workforce poses challenges in the mid-term and it is working with its service vendors to ensure deployment of workforce as and when the demand situation picks up.
(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)