Infrastructure India operations impacted by low demand, labour shortages
Infrastructure fund Infrastructure India said on Monday that operations remained at "low capacity" due to both lower demand and critical shortages of labour and raw materials.
Infrastructure India said its hydro assets were "performing as expected", with some disruption to administrative functions and localised delays, but stated that overall the impact of Covid-19 had been "limited".
However, the impact at Indian Energy had been "greater", with one wind farm project experiencing lower consumption of power during lockdown, leading the business to diversify its customer base.
But despite the "extraordinary upheaval" encountered by all businesses in India during the Covid-19 pandemic, the AIM-listed fund noted that as infrastructure assets were long term, the board still believes that prospects for the logistics market in India remained "strong".
"Although it remains difficult to predict when the wider market will return to normal levels, the IIP Board believes the individual portfolio company management teams have responded well to the crisis and that the Company is well positioned to effectively navigate current market conditions," said the group.
As of 1045 BST, Infra India shares had surged 14.74% to 1.09p.