Motherson Sumi slips after Q3 profit drops 30% to Rs 271 cr

Motherson Sumi Systems (MSSL) slumped 6.35% to Rs 123.90 after the company reported 30.47% decline in consolidated net profit to Rs 270.51 crore in Q3 December 2019 (Q3 FY20) over Q3 December 2018 (Q3 FY19).

Revenue from operations declined 4.91% to Rs 15,436.46 crore in Q3 FY20 from Rs 16,233.65 reported in Q3 FY19.

Profit before tax or PBT in the December quarter stood at Rs 463 crore, down by 43.83% from Rs 824.25 crore in the same period last year.

EBITDA decreased by 10.67% to Rs 1264 crore in Q3 FY20 from Rs 1415 crore in in Q3 FY19, amid challenging global market conditions.

The company said that translational losses on consolidation of company's financial results due to unfavorable movements in foreign exchange rates of approximately 4%.

As on 31 December 2019, the company's consolidated net debt stood at Rs 8,589 crore compared with Rs 8,792 crore on 30 September 2019 and Rs 7,992 crore on 31 March 2019.

"By focusing on improving operational efficiencies across our units and managing our financials prudently, we are adjusting well to market conditions especially in Europe, US and India," the company said.

Commenting on results, Vivek Chaand Sehgal, chairman, MSSL said, "These results reflect the efforts of the team to 'breathe with the market'. We have intensified our focus on the areas we control. We continue to strengthen our operations at the unit level around the world and bring our greenfield plants to optimum levels. Thanks to the great spirit and efforts of our teams, we are able to support the OEMs in navigating through challenging conditions in certain markets and also in managing our cash flows wisely."

Motherson Sumi Systems is one of the world's leading specialized automotive component manufacturing companies for OEMs.

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