India operations limit impact of global industry headwinds, says Motherson Sumi Systems Ltd., Reports Revenues of 14,881 crores and EBITDA of Rs 1,208 crores.
Mumbai 12th Nov 2021 – Motherson Sumi Systems Ltd. (MSSL) today announced financial results for its fiscal 2021-22 second quarter, which ended on 30th September 2021.
Financial Highlights
Consolidated
• Quarterly revenues of Rs. 14,881 crores
• Quarterly EBITDA of Rs 1,208 crores
• Quarterly PAT of Rs. 217 crores
Standalone
• EBITDA of Rs 332 crores at a margin of 15% as revenues up 29% YoY along with efficient cost control measures
SMRP BV
• EBITDA of Euro 71 million at 6.5% margin
Debt
• Higher working capital requirements in Q2 due to irregular production trends by OEMs
• Net Debt to EBITDA (LTM) ratio has increased to 1.32x
Operational Updates
• Cost controls along with partial revenue recovery in India (including SAMIL subsidiaries and JVs) have led to a strong operating performance despite headwinds.
• Sharp drop in OEM production across key geographies due to supply chain constraints have continued to have an adverse impact on revenues and profitability.
• SMRPBV impacted by lower revenues along with higher input, labour and freight costs in key geographies; thereby adversely affecting profitability in Q2.
• PKC was impacted sharp drop in volumes QoQ in China and EU along with continued impact of elevated costs due to new launches and supply chain disruptions.
Other Updates
• Awaiting NCLT approval for next steps of proposed re-organization.
• Announced acquisition of 55% in CIM Tools (India) and 60% in Nanchang JMCG Mekra Lang Vehicle Mirror Co., Ltd. (China) in Oct-21.
Industry Update
• Global demand for passenger vehicles remains strong.
• However, supply side challenges likely to continue in Q3 as well.
• Raw material prices remain elevated, although contractual lag in pricing is expected to narrow.
Commenting on the results, Mr. Vivek Chaand Sehgal, Chairman, Motherson Sumi Systems Ltd. said, “The global automotive industry continues to face multiple challenges on account of supply chain disruptions. Our strategy of 3CX10 has helped us limit the impact to our earnings. Our teams are working very hard to support the customers and deliver value to our stakeholders. We are focused on controlling our cost structure and conserve cash in the current volatile market conditions. We expect the industry headwinds to ease gradually in the upcoming quarters.
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).
Note – All percentages are calculated based on reported numbers with corresponding previous period reported numbers. All comparisons are with the same period last year and all numbers in the press statement are consolidated unless stated otherwise.
