Adverse currency movement due to COVID-19 has impacted profitability of S P Apparels. Indian currency depreciated significantly in Q4FY20 compared to last year. This impacted the company’s hedged positions and resulted in hedging losses and loss of revenue which is expected to impact its operations in Q1 and Q2 of FY21 also.

Despite COVID-19 uncertainties, lockdown and supply chain disruptions, the garments division of the company did not witness any significant order cancellation from the export customers. All its factories and the corporate office were closed from March 21, 2020 as per directives from the government. The company resumed plant operations from May 11, 2020 onwards over different dates for different factories. As of today, all its factories are operating at around 60 per cent capacity due to social distancing norms imposed by the Government authorities.