SKF India's net loss was at Rs 0.25 crore in Q1 June 2020 as against net profit of Rs 77.94 crore in Q1 June 2019.
Net sales slumped 61.22% to Rs 301.24 crore in Q1 June 2020 compared with Rs 776.83 crore in Q1 June 2019. Pre-tax loss stood at Rs 0.33 crore in Q1 June 2020 as compared to a pre-tax profit of Rs 120.68 crore in Q1 June 2019. The result was declared during market hours today, 23 July 2020.
Manish Bhatnagar, managing director of SKF India, said: "The past quarter has been one of the most challenging in our history with nationwide lockdowns and zero production for over 50 days. June brought in some green shoots, but it was short-lived l with ongoing regional lockdowns. As a result of these lockdowns, our revenue for the l quarter was down 49% compared to the prior quarter. During the quarter, we stayed focused on these priorities: customers, suppliers, employees and our communities. By virtually collaborating with customers, we won significant orders for our Rotating Equipment Performance (REP) offerings in the industrial sector, thus proving the long- ten'n potential of these new performance-based business models."
"We partnered with our suppliers every step of the way to ensure their safety protocols, financial viability and labour availability, thereby allowing them to ramp up at the same pace as our factories when we started operations. To ensure safety and well-being of our employees, we took several actions including following all mandatory guidelines and protocols. To build resilience to our cash flows, we continued to focus on cost avoidance and cash preservation. And finally, we worked tirelessly within our local communities to support healthcare workers and migrant labourers. As a result of these focused actions and the resourcefulness of our people, we believe we are well-poised to recover quickly and decisively when the economy starts to return to normalcy," he added.
On the technical front, the stock's RSI (relative strength index) stood at 39.560. The RSI oscillates between zero and 100. Traditionally, the RSI is considered overbought when above 70 and oversold when below 30.
The stock was trading below its 50-day moving average (DMA) placed at 1,552.81 and its 200-day moving average (DMA) placed at 1,840.85.
SKF India manufactures a wide range of ball and roller bearings, such as deep groove, taper roller and other types. Bearings are used by a number of industries, including the automotive, electrical, power generation, cement, steel, petrochemical and textile industries.
Shares of SKF India skid 0.74% to Rs 1,549.85 on BSE. The scrip traded in the range of Rs 1,534.40 to Rs 1,574.15 so far.
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