The company has nearly 800 branches for cargo transportation related activities, majority of which remained closed in the initial period of April and resumed operations from April 20 onwards, it said in a regulatory filing to the BSE.
"In consequent of the above and to lower down fixed expenditure, we have approached the lessors of premises to consider waiver of the rent for the said month and some of them have supported us by consenting to such waiver," the company said.
"Many of the lessors have agreed for partial waivers of rent for the first quarter of financial year 2020-21. However, in spite of making continuous efforts, the profitability of the company is affected due to lower revenue," it added.
TCI Express anticipates COVID-19 to have an impact on the company's performance at least in the first quarter of financial year 2020-21.
There was hardly any business for the month of April 2020 and even for the month of May 2020, the business volume was very low.
However, the company's liquidity position remains strong. It reported a surplus fund of Rs 41 crore and an unutilised cash credit limit of Rs 45 crore as on March 31, 2020.
"The company does not have any outstanding loans and hence does not envisage any default in debt repayment," it said, adding that it is in a good position to manage cash flow and meet financial commitments timely.
"Further, the managing director has voluntarily opted to forego his salary for a period of 3 months to mitigate the financial impact from the disruption caused by the ongoing COVID-19 pandemic," it said.
The company has ensured that employees' emoluments are paid in full along with related statutory payments such as PF, ESI, among others, in a timely manner, it added. NAM RVK