Profitable performance continues for Motherson Sumi Systems Ltd.

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Profitable performance continues for Motherson Sumi Systems Ltd.

Financial Highlights

Consolidated

•     Quarterly revenues of Rs. 16,712 crores

•     Quarterly EBITDA of Rs 1,462 crores

•     Quarterly PAT of Rs. 290 crores

Standalone

•     EBITDA margin of 14.5% despite impact to revenues due to production shutdowns in India

SMRP BV

•     EBITDA of Euro 101 million at 8% margin

Debt

•     Continued deleveraging on improved Net Debt to EBITDA (LTM) ratio

•     Higher working capital requirements in Q1 due to irregular production trends by OEMs

Operational Updates

•     At SMRPBV continued operating efficiencies and turnaround of Greenfield plants in recent quarters have helped offset the impact of lower revenues QoQ

•     PKC impacted by lag in copper price pass-through as well as component shortages, higher logistics and product launch related costs

•     Irregular production stoppages by OEMs globally due to supply chain constraints impacted the profitability of the company

•     Revenues impacted in India due to OEM production shutdown for most part of May 2021 in the current quarter

Other Updates

•     Awaiting NCLT approval for next steps of proposed re-organization

Industry Update

•     Supply chain disruptions due to Semi-conductor and other material shortages globally likely to be headwinds for OEM production in the near term, expected to improve from H2

Commenting on the results, Mr. Vivek Chaand Sehgal, Chairman, Motherson Sumi Systems Ltd. said, “We have witnessed many localised and unpredictable challenges such as lower OEM production due to unavailability of semi-conductor chips, higher commodity and logistics costs etc. in this quarter. Despite challenging market conditions, the team has been able to deliver good results. We expect these headwinds to ease in the upcoming quarters as demand for personal mobility remains strong.”

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