Motherson Sumi Records Rs 290 Crore in Profits In April-June Quarter

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The company’s net debt stood at Rs 6,158 crore at the end of June quarter as compared with Rs 9,065 crore a year ago and Rs 4,807 crore at the end of March quarter

Automotive component manufacturer Motherson Sumi Systems reported a consolidated net profit of Rs 290 crore during the April-June quarter of 2021 as against a net loss of Rs 810 crore in the same period the previous year.

The company’s revenue almost doubled to Rs 16,712 crore from Rs 8,431 crore in June quarter last year, while earnings before interest, tax, depreciation and amortisation (EBITDA) stood at Rs 1,462 crore as against a negative Rs 585 crore a year ago and Rs 2,006 crore in preceding March quarter.

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On the operational front, irregular production stoppages by OEMs globally due to supply chain constraints impacted the profitability of the company. The company said revenue was impacted in India due to OEM production shutdown for the most part of May 2021 in the current quarter. Meanwhile, supply chain disruptions due to semi-conductor and other material shortages globally are likely to be headwinds for OEM production in the near term, expected to improve from the second half.

PKC, the company’s overseas subsidiary engaged in designing, manufacturing and integrating electrical distribution systems, electronics and related components for commercial vehicle industries, was impacted by lag in copper price pass-through as well as component shortages, higher logistics and product launch-related costs during the quarter, the company said.

The company’s net debt stood at Rs 6,158 crore at the end of the June quarter as compared with Rs 9,065 crore a year ago and Rs 4,807 crore at the end of the March quarter.

“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,” Motherson Sumi Chairman Vivek Chaand Sehgal said.

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