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Incap Provides India Factories Update; Outlook for 2021 Remains Unchanged
May 24, 2021 | IncapEstimated reading time: 1 minute
Incap announced on 10 May 2021 that it had temporarily closed down its factories in Tumkur until 24 May 2021. The temporary closure was related to Karnataka State Government’s intensified measures against the coronavirus pandemic.
The State Government has extended the intensified measures and the lock-down until 7 June 2021. However, Incap has been granted a permission for partial operations to support the manufacturing of critical electronic equipment including applications for healthcare. Incap continues its close co-operation with the Karnataka State Government and follows the instructions announced. The company expects that the factory will be back to normal operations by 7 June 2021.
The closure and the partial operations of the factories in India do not have an impact on the company’s outlook for 2021 published on 21 April 2021. Incap’s previously announced outlook for 2021:
Incap estimates that its revenue, operating profit (EBIT) and adjusted operating profit (EBIT) for 2021 will be clearly higher than in 2020.
The increase in revenue and operating profit estimate is driven by the strong development at the Indian factories and the ramp-up of the factory expansion, that has proceeded faster than expected. Furthermore, the visibility related to the customers’ forecasts and the company’s own assessments of the business development has improved.
The estimates are given provided that there are no major negative changes in the coronavirus pandemic situation, currency exchange rates or in component availability and they are based both on Incap’s customers’ forecasts and the company’s own assessments of the business development.
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