17th Mar 2020 15:39
(Alliance News) - Infrastructure India PLC on Tuesday said it is too early to quantify the impact of Covid-19, which is already hurting its shipping business.
Isle of Man-based Infrastructure India, via subsidiary DLI, operates a port at Nagpur, India, and the firm said the business performed well during the first quarter of 2020, with revenue up and costs down.
Works at Nagpur are on schedule, it said, as is construction work at another port facility in Chennai.
"The primary market impact of the global pandemic at present has been an overall reduction in the flow of export-import goods between India and China and changes in the flow of goods has had an impact on the cycling balance of containers," said Infrastructure India.
"Reduced movements of goods and raw materials between China and India has impacted some of DLI's customers' inventories and therefore production and shipping."
"The changes in the balance of movements of goods, as a result of the global pandemic, are resulting in bottlenecks as empty containers need to be repositioned to meet domestic and export shipments. In particular, a current lack of available empty containers is having an impact on Indian hinterland exporters," it continued.
Infrastructure India said it is too early to give any firm guidance on how Covid-19 will affect trading, but it believes volatility in the freight and container market will continue.
Shares were 15% lower on Tuesday in London at a price of 1.10 pence each.
By George Collard; [email protected]
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