Motherson Sumi Q2 PAT slides 12% to Rs 337 cr

The auto component maker's consolidated net profit fell 12.2% to Rs 337.58 crore on 1.98% decline in total revenues from operations to Rs 14,957.21 crore in Q2 FY21 over Q2 FY20.

Profit before tax in Q2 September 2020 stood at Rs 553.58 crore, up by 0.8% from Rs 549.31 crore in Q2 September 2019. Total tax expense during the quarter declined by 3.5% year-on-year (YoY) to Rs 165.65 crore.

With improved operating performance and debt repayments, net debt reduced from Rs 9,083 crore to Rs 7,512 crore between 30 June 2020 to 30 September 2020. Further liquidity also enhanced from Rs 10,037 crore to Rs 11,629 crore between 30 June 2020 to 30 September 2020.

The company said that new orders worth Rs 14,694 crore (euro 1.7 billion) were received while orders worth Rs 19,016 crore (euro 2.2 billion) were executed during H1 FY20-21. Total order book, at SMRP BV level, was Rs 113,234 crore (euro 13.1 billion) for H1 FY20-21.

The company said there was an improvement in global operations in post COVID world. Approximately 80% of the company's facilities are running at over 75% capacity, indicating that things have come back to near normal.

Commenting on results, Vivek Chaand Sehgal, chairman, Motherson Sumi Systems, said: "Global automotive industry is on a path to recovery in post COVID world. We are seeing surge in demand across the globe. Our teams are geared up to fulfil the demands of our customers. We believe that in the upcoming quarters, strong traction will continue to be there. Operational improvements done by our teams across the globe have resulted in improved performance of our plants."

Motherson Sumi Systems is one of the world's leading specialised automotive component manufacturing companies for original equipment manufacturers.

The scrip rose 3.09% to Rs 126.80 on the BSE. It traded in the range of 120.50 and 128.60 so far during the day.

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