Motherson Sumi Systems posts Q1 PAT of Rs 290 cr
Aug 10, 2021
Noida (Uttar Pradesh) [India], August 10 : Specialised automotive component manufacturing company Motherson Sumi Systems Ltd (MSSL) on Tuesday posted a profit after tax of Rs 290 crore in the April to June quarter versus a loss of Rs 810 crore in the same quarter of last year.
It said profitable performance continued for the company as cost and efficiency improvements limited the impact of industry headwinds.
Quarterly revenues totalled Rs 16,712 crore while earnings before interest, tax, depreciation and amortisation (EBITDA) was to the tune of Rs 1,462 crore in Q1 FY22.
"At Samvardhana Motherson Automotive Systems Group BV (SMRPBV), continued operating efficiencies and turnaround of greenfield plants in recent quarters have helped offset the impact of lower revenues QoQ," it said in a statement.
Irregular production stoppages by OEMs globally due to supply chain constraints impacted the profitability of the company, it added. Revenues impacted in India due to OEM production shutdown for most part of May in the current quarter.
Supply chain disruptions due to semiconductor and other material shortages globally is likely to be headwind for OEM production in the near term but expected to improve from H2, said the company.
"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 in this quarter," said Chairman Vivek Chaand Sehgal.
"We expect these headwinds to ease in the upcoming quarters as demand for personal mobility remains strong."
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.
