Sales for the quarter ended 30" June 2020 at Rs. 50.9 Crores, were impacted heavily by the widespread countrywide Covid-19 lockdown, reducing from Rs.123.5 Crores in the prior year. Following the negligible lockdown revenue in April 2020, sales slowly restarted in May 2020 (at 38% of the prior year) and continued to improve in June (at 90% of the prior year).
To Counter this, the management implemented timely strict working capital management and cost reduction measures during the Covid-19 pandemic lockdown period that resulted in the cash-flow from operations increasing to Rs. 33.4 Crores during Q1 FY 2020-21 up from Rs.10.2 Crores in Q1 FY 2019-20.The widespread cost reduction measures included the graded voluntary salary cuts at certain employee levels to off-set the impact of lower sales volumes.
During the quarter, the Singer e-commerce business increased dramatically, now representing nearly 13% of sales in June 2020 versus just 4% in same month in 2019. The company is set to explore further exciting e-commerce opportunities in the months ahead.
Due to lower sales volumes in this quarter, the Company booked a net loss of Rs. 1.70 crores. These temporary pandemic related losses are expected to be eliminated in the months ahead as the business environment gradually normalizes.
Rajeev Bajaj, Managing Director, Singer India Limited commented; "During the unprecedented Covid pandemic period, the Company focused on receivable collections, higher cash sales, inventory reductions and several expense optimization measures to counter the adverse impact of the lower sales volumes. The company also managed to increase the gross margins on these residual sales.
Whilst the localized and temporary lockdowns still hamper our business, thankfully the company is pleased to report that the July 2020 sales have recovered above the prior year levels.
Throughout the Covid-19 period, the utmost priority and emphasis of the company has remained the health and safety of its customers and staff. The Management is eternally grateful to its employees and business associates for their tremendous support and assistance.
Shares of SINGER INDIA LTD. was last trading in BSE at Rs.27 as compared to the previous close of Rs. 28.9. The total number of shares traded during the day was 290779 in over 744 trades.
The stock hit an intraday high of Rs. 30.75 and intraday low of 26.3. The net turnover during the day was Rs. 8350628.