Varroc Engineering fell 2.43% to Rs 399 after the company said that fire erupted in the Varroc Lighting Systems India premises on the outskirts of Pune city early Tuesday morning.
On 18 February 2020, at around 3:15 IST, fire occurred at Varroc Lighting Systems India (subsidiary of Varroc Engineering) plant located in Hinjewadi, Pune. The plant manufactures lighting products for four wheelers in India and contributes about 2% to the consolidated revenue of Varroc Engineering. The company has adequate insurance coverage and has informed the insurance company about the incident, Varroc Engineering said in a statement.
The fire incidence took place outside the manufacturing block, which then spread to packaging area and resulted into a fire outbreak. There are no human casualties reported. The company is in the process of ascertaining the actual cause of fire and the loss caused by it. Adequate steps are being undertaken to ensure customer service at the earliest. This will have no significant impact on the company's operations, the statement added.
On a consolidated basis, Varroc Engineering's net profit slumped 70.6% to Rs 29.17 crore on a 5.1% decline in net sales to Rs 2803.81 crore in Q3 December 2019 over Q3 December 2018.
Varroc Engineering operates as an automotive component manufacturer and supplier. The company designs, develops, and manufactures starter and wiper motors, alternators, switches, lamps, digital instruments, cluster, instrumental panel, door trims, mirror assemblies, and gears.
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