Motherson Sumi Q4 PAT tumbles 55% to 183 cr

Motherson Sumi Systems (MSSL) reported 55.3% decline in consolidated net profit to Rs 183.38 crore on 12.1% fall in net sales to Rs 14870.32 crore in Q4 March 2020 over Q4 March 2019.

Profit before tax (PBT) was at Rs 467.11 crore in Q4 FY20, down by 31% from Rs 677.25 crore reported in Q4 FY19. While total expenditure fell 13.5% to Rs 13,776.22 crore, current tax expenses shrunk 49.5% to Rs 134.69 crore in Q4 FY20 over Q4 FY19.

The company's consolidated net profit fell 27.5% to Rs 1170.04 crore as net sales remained flat at Rs 62573.10 crore in the year ended March 2020 (FY20) over the year ended March 2019 (FY19). PBT stood at Rs 2112.86 crore in FY20, down by 34% from Rs 3200.28 crore in FY19.

"New orders worth Rs 43,321 crore (euro 5.5 billion) won during the year, while orders worth Rs 79,554 crore (euro 10.1 billion) went into execution," the company said.

Commenting on results, Vivek Chaand Sehgal, chairman, MSSL, said Our consolidated revenues for this fiscal year have remained stable. Considering that global automotive sales have declined in the same period and that the coronavirus pandemic was already impacting China and parts of Europe in the Fourth Quarter, this is a strong performance under the circumstances. We are encouraged by the fact that our large Greenfield projects have started to contribute positively to our revenues. We are currently focused on finding solutions to the challenges we face in our Tuscaloosa operations in close coordination with our customer. While there has been a lot of uncertainty in the market, it's expected that the worst of the pandemic will fall in the next few quarters.

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

Shares of the auto ancillary rose 5.34% to end at Rs 101.65 on Tuesday. It had traded in the range of Rs 94.20 and Rs 105.50 during the day.

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