Motherson Sumi posts Rs 290 crore net profit in Apr-Jun

Motherson Sumi Systems on Tuesday reported a consolidated net profit of Rs 290 crore during April-June quarter of 2021 as against a net loss of Rs 810 crore in the year-ago quarter.
 
The automotive component manufacturing 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.
 
PKC, an overseas subsidiary of the company engaged in designing, manufacturing and integrating electrical distribution systems, electronics and related components for commercial vehicle industries, rolling stock manufacturers and other related segments, 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.

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"Irregular production stoppages by OEMs (original equipment manufacturers) globally due to supply chain constraints impacted the profitability of the company," Motherson Sumi said. Besides, India revenue was impacted due to OEM production shutdown for most part of May 2021.
 
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.
 
On the outlook, Motherson Sumi said supply chain disruptions due to semi-conductor and other material shortages globally are likely to be headwinds for OEM production in the near term and the situation is expected to improve in the second half of the year.

"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.
 
Shares of Motherson Sumi were trading 2.08 per cent lower at Rs 226.10 on the BSE on Tuesday.

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