Profitable performance continues for Motherson Sumi Systems Ltd. as cost and efficiency improvements limit impact of industry headwinds. PAT of Rs 290 crores vs loss of Rs 810 crores in the same quarter last year.
Profitable performance continues for Motherson Sumi Systems Ltd. as cost and efficiency improvements limit impact of industry headwinds. PAT of Rs 290 crores vs loss of Rs 810 crores in the same quarter last year.
Mumbai – 10th Aug 2021 – Motherson Sumi Systems Ltd. (MSSL) today announced financial results for its fiscal 2021-22 first quarter, which ended on 30th June 2021.
Financial Highlights
Consolidated
• Quarterly revenues of Rs. 16,712 crores
• Quarterly EBITDA of Rs 1,462 crores
• Quarterly PAT of Rs. 290 crores
Standalone
• EBITDA margin of 14.5% despite impact to revenues due to production shutdowns in India
SMRP BV
• EBITDA of Euro 101 million at 8% margin
Debt
• Continued deleveraging on improved Net Debt to EBITDA (LTM) ratio
• Higher working capital requirements in Q1 due to irregular production trends by OEMs
Operational Updates
• At SMRPBV continued operating efficiencies and turnaround of Greenfield plants in recent quarters have helped offset the impact of lower revenues QoQ
• PKC impacted by lag in copper price pass-through as well as component shortages, higher logistics and product launch related costs
• Irregular production stoppages by OEMs globally due to supply chain constraints impacted the profitability of the company
• Revenues impacted in India due to OEM production shutdown for most part of May 2021 in the current quarter
Other Updates
• Awaiting NCLT approval for next steps of proposed re-organization
Industry Update
• Supply chain disruptions due to Semi-conductor and other material shortages globally likely to be headwinds for OEM production in the near term, expected to improve from H2
Commenting on the results, Mr. Vivek Chaand Sehgal, Chairman, Motherson Sumi Systems Ltd. said, “We have witnessed many localised and unpredictable challenges such as lower OEM production due to unavailability of semi-conductor chips, higher commodity and logistics costs etc. in this quarter. Despite challenging market conditions, the team has been able to deliver good results. We expect these headwinds to ease in the upcoming quarters as demand for personal mobility remains strong.”
About Motherson Sumi Systems Limited
Motherson Sumi Systems Limited (MSSL) is one of the world’s leading specialised automotive component manufacturing companies for OEMs. MSSL was established in 1986 as a joint venture with Sumitomo Wiring Systems and was listed in 1993 on BSE and NSE in India. MSSL is a focused, dynamic and progressive company providing customers with innovative and value-added products, services and solutions. With a diverse global customer base of nearly all leading automobile manufacturers globally, the company has a presence in 41 countries across five continents. MSSL is currently the largest auto ancillary in India and among the Fab 50 companies of India by Forbes magazine. MSSL is the flagship company of the Motherson Group, ranked 21st among global automotive suppliers by Automotive News. For more details, please visit www.motherson.com (CIN - L34300MH1986PLC284510).
