Motherson Sumi Q3 net down 39% to Rs 340 cr owing to challenging market

Auto componentmajor Motherson Sumi Systems Ltd on Monday reported a 38.67 per cent decline in consolidated net profit at Rs 340.32 crore for the third quarter ended December 31, 2019.

The company had posted a consolidated net profit of Rs554,99 crore in the same quarter last fiscal,Motherson Sumi Systems Ltd (MSSL) said in a regulatory filing.

Revenue from operations during the quarter under review stood at Rs 15,436.46 crore, as against Rs16,233.65 crore in the year-ago period, it added.

MSSL Chairman Vivek Chaand Sehgal said these results reflect the efforts of the team to 'breathe with the market' and noted that there were "challenging conditions" in 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," he added.

The company has been "able to support original equipment manufacturers (OEMs) in navigating through challenging conditions in certain markets and also in managing our cash flows wisely", he added.

MSSL further said it has beenfocusing on improving operational efficiencies across units.

Considering the challenging market conditions globally all business divisions have performed well, it said adding, India operations showed stable profits during the quarter largely driven by programs to improve operational efficiencies in a declining market.