Motherson Sumi Q1 profit dips 42% to Rs 360.64 crore, revenue up 14%
BusinessToday.In August 12, 2019
Auto component manufacturer Motherson Sumi Systems on Monday reported 41.67 per cent year-on-year decline in its consolidated net profit at Rs 360.64 crore for the first quarter ended June 30, 2019.
"The flagship company of the Samvardhana Motherson Group had posted a net profit of Rs 618.35 crore in the same quarter last year," Motherson Sumi Systems said in a filing to the Bombay Stock Exchange.
The company said that its profitability was impacted by adverse ramp-up costs at Samvardhana Motherson Peguform (SMP) greenfield projects and tough market conditions.
Motherson Sumi's revenue from operations rose by 13.65 per cent to Rs 16,792.53 crore in Q1FY20 versus Rs 14,775.46 crore in Q1FY19.
Motherson Sumi's India business revenue declined to Rs 1,786 crore for April-June 2019 as compared with Rs 1,870 crore in the year-ago period. However, revenue from businesses outside India jumped 16.37 per cent to Rs 14,771 crore against Rs 12,693 crore in the year-ago period.
EBITDA (Earnings before interest, tax, depreciation and amortisation) dropped by 10.19 per cent to Rs 1,277 crore from Rs 1,422 crore in the corresponding period last year.
Commenting on Q1 earnings, Vivek Chaand Sehgal, Chairman, MSSL said, "Amidst challenging global market conditions, the Board recognised and appreciated the efforts of the teams who have worked very hard. The greenfield plants of SMP are showing slow continuous improvement and we expect the trend to continue provided there is no further global slowdown."
"We are pleased with the continued robust performance of PKC Group as well as other businesses. We continue to focus on managing cash flows and debt, and in improving operational efficiency. We thank our customers for their continued trust in us," he added.
Edited by Chitranjan Kumar