Shalimar Paints Ltd on Tuesday reported widening of its consolidated net loss to Rs 10.61 crore for the first quarter ended June 2020 as its performance was significantly affected due to COVID-19 pandemic and lockdown. The company had posted a net loss of Rs 5.35 crore in April-June quarter a year ago, Shalimar Paints said in a regulatory filing.
Its revenue from operations declined 47.70 per cent to Rs 44.48 crore during the quarter under review as against Rs 85.06 crore in the year-ago period.
The company was significantly affected due to COVID-19 and lockdown announced by the Central and state governments, Shalimar Paints said.
“The company has two segments – decorative, which is mainly for residential paints, and industrial, which is mainly for commercial and manufacturing paints.
“While both the businesses were impacted…residential business has started to recover faster. This may be due to completion of ongoing projects or re-painting jobs in semi-urban areas,” the company said in a post earnings statement.
The company’s sales were limited in Q1 FY21, and with most of the cost, other than raw materials, being of fixed nature, the reduction in sales revenue impacted the bottom line significantly, Shalimar Paints said.
The company’s total expenses declined 36.82 per cent to Rs 57.70 crore as against Rs 91.34 crore a year ago.
“We, at Shalimar, are even more firm now turning the tide and getting better results in coming months. Towards that end each and every operation is being streamlined and costs being pruned to the lowest possible level,” Shalimar Paints Managing Director Ashok Kumar Gupta said.
Shares of Shalimar Paints on Tuesday closed 1.22 per cent lower at Rs 68.55 on the BSE.