Motherson Sumi Systems jumped 9.35% to Rs 259.60 after the company's consolidated net profit surged 290% to Rs 713.62 crore in Q4 FY21 from Rs 183.38 crore in Q4 FY20.
Total revenue from operations increased 17.58% year-on-year (YoY) to Rs 16,971.91 crore during the quarter.
Sequentially, however, the company's net profit and revenue from operations declined 10.62% and 0.71%, respectively.
Motherson Sumi said that consolidated revenues in Q4FY21 were more than pre-COVID levels as industrial activity picked up globally. This was despite multiple headwinds such as chip shortage, higher commodity costs etc. the company sustained profitability.
The company reported a pre-tax profit of Rs 914.17 crore in Q4 FY21 as against a pre-tax profit of Rs 337.28 crore in Q4 FY20.
Also Read
The auto ancillary firm recorded 11.19% decline in consolidated net profit to Rs 1,039.13 crore on 5.53% fall in total revenue from operations to Rs 57,369.91 crore in FY21 over FY20.
Motherson Sumi said that improved profitability and realization of engineering revenues helped free cash generation, leading to lowest ever debt/EBITDA ratio. It further said that Moody's had upgraded outlook while maintaining rating at Ba1.
The company said that it had received shareholder approval for reorganization with overwhelming majority and added that it has second motion petition with NCLT. It has also completed two acquisitions (75% in Plast Met in Turkey and assets of Bombardier rolling stock in Mexico) in April 2021.
The company said that production shutdowns (India) and semi-conductor shortages globally likely to be headwinds for OEM production in the near term.
Vivek Chaand Sehgal, chairman, Motherson Sumi Systems, said, "We appreciate the overwhelming support from shareholders with regards to the group re-organisation. It reinforces our belief in the merits of the reorganisation scheme. The Q4 and FY21 results are reflection of the tremendous hard work that our teams have put in globally despite multiple challenges and sets the tone for us to achieve our stated Vision 2025 targets."
Motherson Sumi Systems is one of the world's leading specialised automotive component manufacturing companies for original equipment manufacturers.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
