State-run engineering major BHEL on Monday said it’s still grappling with uncertainties with reference to the resumption of normal business operations as rising coronavirus infection cases have led to a labor shortage and provide chain disruptions.
The country went into an entire lockdown in March-end to see the spread of coronavirus and therefore the government started giving relaxations in lockdown guidelines towards the April-end by gradually opening up economic activities.
However, with COVID-19 cases still surging in various parts of the country, BHEL struggled to urge back to its normal operational capacity.
Meanwhile, India’s COVID-19 tally has crossed the 18-lakh mark and therefore the price has climbed to 38,135, official data showed on Monday.
“Return to normal business operations is presently uncertain thanks to rising COVID-19 cases across the planet, including India, disrupted supply chains and poor labor availability at project sites,” the corporate said during a regulatory filing.
The company said it’s continuously assessing the prevailing conditions for taking the simplest possible steps, but an inexpensive measure of the longer-term impact is going to be possible just one occasion the general situation stabilizes.
The disruption of international supply chains within the half-moon of the civil year, including the nationwide lockdown towards the top of Q4 FY20, has some impact on the financial parameters, in respect of revenues, profitability, and cash inflows, the filing said.
Cash collection activities continue, but delays thanks to the prevailing conditions are anticipated, it added.
However, the corporate possesses an encouraging response from the first equipment manufacturers (OEMs) for utilizing its manufacturing facilities.
Earlier in May, BHEL had invited expression of interest (EOI) from global OEM firms to leverage its facilities also as capabilities and to shift its production base to India amid the COVID-19 pandemic.
The EOI was issued on-premise that there has been an outsized number of o.e.m firms who intended to shift their manufacturing base from China to other countries after the COVID-19 outbreak.
BHEL said on Monday, “Nearly 60 relevant responses (on the EOI) are received with quite 50 percent companies of foreign origin, cutting across several sectors like railways, defense & aerospace, e-mobility, power equipment, etc. High-level teams at BHEL are working to require these forward during a time-bound manner.
(With inputs from MoneyControl)