Lyka Labs faces liquidity crunch, sales affected due to COVID restrictions

New Delhi: Pharmaceutical firm Lyka Labs on Friday said the coronavirus-induced lockdown had an adverse impact on sales, created liquidity crunch and the company's performance continues to be affected by COVID-19 restrictions.

In a regulatory filing disclosing the impact of COVID-19, Lyka Labs said although the government allowed pharma firms to operate during the lockdown, the presence of workers at its Ankleshwar factory, in Gujarat, was very low, as a result, production has been badly affected. The plant was running at 40 percent of its capacity.

"There has been interruption in the supply of raw material and packing material to the factory," it added.

Lyka Labs further said, "parties who have placed orders with the company have deferred the execution of orders, as a result, sales has been affected and created liquidity crunch."

The company has to bear interest cost and fixed overheads by way of rent of the office premises and Research and development (R&D) center affecting liquidity position, it added.

The administrative office and R&D center of the company at Mumbai are partially operating at present after closing down initially during the lockdown.

The performance of the company continues to be affected during the lockdown, it added.

Read also: Bharat Biotech, IVI Get Rs 106 Crore Funding From CEPI For Developing Chikungunya Vaccine