Motherson Sumi Systems reported robust 40% growth in consolidated net profit to Rs 194.83 crore in the quarter ended March 2012. The bottomline was primarily aided by spike in forex gain (by whopping 415% on long term loans and others), moderate operating performance otherwise constrained by hike in interest and depreciation costs. The topline grew by whopping 173% to Rs 6425.23 crore boosted by sales of Samvardhana Motherson Polymer (SMP) sales of Rs 3377 crore. Excluding SMP sales, the net sales grew by 29%. The operating profit margin (OPM) crashed by 430 bps on spike in raw material costs. Thus the operating profit grew by constrained though impressive 64% to Rs 427.46 crore.
The company had acquired Peguform (including its subsidiaries and JVs) on 23rd November 2011 and merged Sumi Motherson Innovative Engineering and wholly owned subsidiaries - India Nails Manufacturing and MSSL Global wiring w.e.f 1st April 2011. Thus the standalone and consolidated results for the quarter and year ended March 2012 are not comparable with its corresponding previous periods.
The consolidated topline grew by whopping 173% to Rs 6425.23 crore in March 2012 quarter. Out of this, net sales grew by impressive 175% to Rs 6368.22 crore primarily on including sales of SMP of Rs 3377 crore (none in March 2011 quarter as the same was acquired only in Nov 2011). The sales within India grew by 25% to Rs 1243.80 crore while the sales outside India grew by whopping 288% to Rs 5124.42 crore as it included the sales of SMP. Excluding the sales of SMP, the net sales grew by 29% y-o-y while sales outside India rose by 32%.
Spike in raw material costs led to whopping 430 bps crash in OPM to 6.7%. Thus the operating profit grew by limited though robust 64% to s 427.46 crore. Raw material costs, as % to sales net stock adjusted, grew by whopping 290 bps to 65%. Also the employee cost grew by 120 bps to 16%. The other expenditure increased by 10 bps to 12%.
The PBT after EO grew by robust 51% to Rs 304.13 crore solely aided by spike in forex gains, otherwise constrained by spike in non operating expenses. The forex gain grew by outstanding 415% to Rs 92.68 crore. On the other hand, profits were constrained by whopping 470% spike n interest cost (to Rs 78.95 crore) and 112% increase in depreciation cost (to Rs 142.87 crore). Also the other income reduced by 20% to Rs 3.31 crore. It earned EO income of Rs 2.50 crore. The net profit settled with 40% growth to Rs 194.83 crore post accounting spike minority interest.
On standalone basis, the topline grew by robust 41% to Rs 1211.03 crore. It was aided by 35% growth in sales in India (to Rs 1007.48 crore) and whopping 128% spike in sales outside India (to Rs 185.43 crore). Lower raw material costs enabled 50 bps growth in OPM to 18.7%. Thus the operating profit grew by robust 45% to Rs 226.18 crore. The PBT grew by impressive 67% to Rs 226.58 crore aided by higher other income (by whopping 563%) and forex gain (by 337%) though partially moderated by higher non operating expenses i.e. depreciation and interest costs. The net profit grew by constrained though robust 44% to Rs 165.23 crore on whopping 1180 bps spike in effective tax rate.
In FY 12, the consolidated operating income grew by impressive 78% to Rs 14907.58 crore. Out of this, consolidated net sales grew by impressive 80% to Rs 14702.23 crore primarily aided by inclusion of sales of SMP of Rs 4528 crore. The sales inside India grew by 18% to Rs 3822.66 crore. The sales outside India grew by whopping 121% to Rs 10879.57 crore. Excluding the SMP sales, the sales outside India grew by 29% to Rs 6351 and total net sales grew by 24% to Rs 10173.66 crore.
The OPM crashed by 340 bps to 7.2% on overall weak operating performance. Thus the operating profit grew by limited 21% to Rs 1074.43 crore. Raw material costs, as % to sales net stock adjusted, grew by 170 bps to 64%. Also the employee cost grew by 80 bps to 16% while other expenditure rose by 60 bps to 13%.
The PBT before EO fell by 22% to Rs 492.58 crore on incurring forex loss (against gain in FY 11), spike in interest and depreciation costs. It incurred forex loss of Rs 50.87 crore against forex gain of Rs 33.71 crore in FY 11. Also interest cost grew by whopping 186% to Rs 164.85 crore while the depreciation cost grew by notable 54% to Rs 379.64 crore. The profits were further worsened by net EO expense of Rs 80.92 crore (nil in FY 11) thereby lowering the PBT after EO by notable 35% to Rs 411.66 crore. The net EO expense includes Rs 76.37 crore for acquisition of SMP and one time costs relating to acquisition in terms of due diligence expenses etc and Rs 4.55 crore towards write off of goodwill arising from acquisition of Vacuform 2000. On accounting tax provision, minority interest etc, the net profit settled with 34% fall to Rs 259.64 crore
On standalone basis, the topline grew by 26% to Rs 3587.46 crore in FY 12. Out of this, sales inside India grew by 22% to Rs 3040.87 crore while that outside India rose by impressive 76% to Rs 488.03 crore. However 10 bps fall in OPM to 16.1% led to limited 25% growth in operating profit to Rs 577.15 crore. The net profit settled with marginal 10% growth to Rs 317.17 crore primarily constrained by incurring forex loss (against gain in FY 11).
Currently the scrip is trading at Rs 163.20 on BSE.
Motherson Sumi Systems: Consolidated Results
Motherson Sumi Systems: Standalone Results