InvestorQ : Why did Kesoram Industries report such a sharp fall in numbers for the Jun-20 quarter?
shrinidhi Rajan made post

Why did Kesoram Industries report such a sharp fall in numbers for the Jun-20 quarter?

Answer
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Riya Dwivedi answered.
2 months ago


Kesoram, part of the Birla group, reported net sales of Rs.427 crore, down 57% in the Jun-20 quarter. For the Jun-20 quarter, Kesoram also reported a net loss of Rs.15.95 crore as against a net profit of Rs.10.81 crore in the Jun-19 quarter. There were some clear pressures on the operating front as EBITDA fell by 39% to Rs.88.54 crore.

Clearly, the pressure on the numbers is largely driven by the sharp fall in demand due to the pandemic. The prolonged slowdown hit Kesoram in multiple ways. On the one hand supply chains got disrupted while on the other hand the demand from the predominant construction industry was almost absent as projects were put on hold.