Credit rating firm ICRA has reported a 17 per cent fall in consolidated net profit to Rs 17.04 crore for the first quarter ended June 30, 2020.
The company’s net profit had stood at Rs 20.53 crore in the corresponding quarter of the previous fiscal.
Its total income also moderated to Rs 80.79 crore for the quarter ended June 2020, from Rs 88.69 crore a year ago, ICRA said in a regulatory filing.
The level of activity in the economy was significantly impacted by the coronavirus-induced lockdown in the first quarter of 2020-21, it said.
The rating agency also added that this along with less-than-expected pick-up in the economy in the second quarter due to partial lockdowns in some geographies have resulted in the agency’s estimate of GDP contracting further to 9.5 per cent, it said.
Based on the current assessment, this situation does not materially impact the company’s capital and financial resources, ICRA said.
However, the actual impact of Covid-19 may differ from that estimated due to unforeseen circumstances, it said. The company will continue to closely monitor any material changes to future economic conditions and consequential impact on its financial statements, it added.