Auto component maker Minda Corporation on Thursday reported a loss of Rs 35.40 crore for the quarter to June 2020.
The flagship company of the Spark Minda had posted a profit of Rs 21.20 crore in the June quarter of 2019-20.
Operating revenue declined 69.5 per cent to Rs 178 crore during the quarter under review as against Rs 584 crore in Q1 FY20.
Various decisions taken during the June quarter to reduce the breakeven level and allocate capital efficiently is expected to improve performance from Q2 FY21, the company said.
"The first quarter of FY21 was an unparalleled period for the auto industry as the business activity was severely impacted by the COVID-19 pandemic. However, we are seeing green shoots emerging in certain segments especially two-wheelers and tractors with production and sales picking up from June'20 onwards," according to a Minda Corporation statement.
Focus on efficient working capital and tight cash flow management resulted in positive free cash floweven in a tough market condition of Q1 FY21,the company said.
The company also took numerous cost optimisation measures and continued its focus on efficient working capital management during the quarter resulting in positive free cash flow, it said adding the strong capital structure has helped it emerge stronger out of the current pandemic.
Minda Corporation expects robust recovery and a quick return to profitability from September quarter onwards, the company said.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.