Monte Carlo Fashions incurs Rs 65 cr revenue loss in Apr-Jun due to COVID-19

Clothing firm Monte Carlo Fashions on Saturday said it incurred a revenue loss of Rs 65 crore in the April-June quarter this year and is operating at around 80 per cent capacity due to the impact of COVID-19 and resultant lockdowns.

Clothing firm Monte Carlo Fashions on Saturday said it incurred a revenue loss of Rs 65 crore in the April-June quarter this year and is operating at around 80 per cent capacity due to the impact of COVID-19 and resultant lockdowns. "In-line with government directives, we resumed our operations on April 21, 2020, complying with the government's safety and security norms for COVID-19. At present, we are operating at around 80 per cent capacity and gradually ramping up the capacity," Monte Carlo Fashions Ltd said in an investors presentation.

Monte Carlo said the COVID-19 pandemic followed by the nation-wide lockdown impacted the dispatches leading to a revenue loss of Rs 65 crore in the first quarter of the current financial year. Monte Carlo, which has a presence in 20 states and three union territories, said it continues to work with its business partners across all channels including company-owned company-operated retail outlets, franchised outlets and large format stores and multi-brand outlets.

"Considering that the situation is unprecedented and is changing dynamically, we are planning products based on the estimate of demand ... "We are confident in the underlying strength of our business model, and our medium-term liquidity needs are well covered. With adequate banking limits in place, company's ability to service its debts and financing obligations on time remains unaffected," the company said.

The company has also launched new products in the healthcare segments such as face masks and personal protective equipment (PPE) kit. Monte Carlo said it has implemented stringent cost control measures and "is hopeful to sustain growth without any significant capex".

"We continue to evaluate the impact of the pandemic and are fully geared to withstand the challenges as the situation unfolds on the back of our financial and operational strengths. Our strong presence in winter wear market along with well-diversified product portfolio across ranges will help us to minimise the impact of COVID-19 for the full financial year 2021," the company added. Monte Carlo has reported a net loss of Rs 13.53 crore and total income of Rs 16.79 crore for the first quarter of the current financial year.

It had reported a net loss of Rs 6.13 crore and total income of Rs 62.54 crore in the corresponding quarter a year ago...

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