Motherson Sumi Systems

Q1FY20 sales up 14%; net down 42%

Aug 19, 2019 05:08 IST capital market

Motherson Sumi Systems reported 42% decrease in its consolidated net profit at Rs 360.6crore for thefirst quarter ended June Mar 2019. The company had posted a net profit of Rs 618.4 crore during the same period of the previous fiscal. Net sales during the period under review stood at Rs 16,792.53crore as against Rs 14,775.46 crore in the year-ago period, up 14%. Poor performance at the operational level coupled with steep hike in interest and depreciation cost took a toll on bottomline. Bottomline would have hit further if not forrise in other income.

Commenting on results, Mr Vivek Chaand Sehgal, Chairman, MSSL said Amidst challenging global market conditions, the Board recognised and appreciated the efforts of the teams who have worked very hard. The Greenfield plants of SMP are showing slow continuous improvement and we expect the trend to continue provided there is no further global slow down. We are pleased with the continued robust performance of PKC Group as well as other businesses. We continue to focus on managing cash flows and debt, and in improving operational efficiency. We thank our customers for their continued trust in us.

Quarterly Performance:

During the first quarter endedJune 2019, domestic salesfell 4.4% and sales outside India grew by 16.3%.

During the quarter, Standalone revenues fell 8% and EBITDA fell 12%.SMR revenues fell 2% andEBITDA fell 13%. SMP revenues grew by 32% but it incurred a loss of Rs 86.84 crore vis a vis a profit of Rs 228.17 crore in the previous corresponding quarter.

The operating profit margin on a consolidated basis fell 200bps to 7% due to increased employee and other cost.Thus the operating profit decreased by 12% to Rs 1170.7crore. Raw material costs, as % to sales net stock adjusted, fell 120 bps to 56.7% during the quarter. The employee expenses costs rose 160 bps to 23.1%. Other cost rose 80 bps at 11.6%.

Following 23% rise in other income to Rs 54.74 crore, PBIDT fell 11% to Rs 1225.5crore. The interest cost rose 55% at Rs 155.92crore while depreciation cost rose 51% to Rs 552.24 crore. Followingnil EO expense, PBT after EO fell 43% to Rs 517.31 crore. Following46%drop in tax provision (170 bps drop in tax rate), PAT fell 42% at Rs 339.91crore.

The scrip is currently trading around Rs 99 at BSE.

Motherson Sumi Systems: Consolidated Results

 

Particulars 1906(3) 1806(3) Var.(%) 1903(12) 1803(12) Var.(%)
Total Operating Income 16792.53 14775.46 14 63522.88 56293.32 13
OPM(%) 7.0 9.0 7.9 8.6
OP 1170.7 1329.7 -12 5002.9 4826.9 4
Other Income 54.74 44.68 23 220.18 170.09 29
PBIDT 1225.5 1374.4 -11 5223.1 4997.0 5
Interest 155.92 100.46 55 423.15 410.8 3
PBDT 1069.55 1273.9 -16 4799.93 4586.22 5
Depreciation 552.24 364.63 51 1712.74 1279.49 34
PBT before forex gain/loss 517.31 909.27 -43 3087.19 3306.73 -7
Forex gain/loss #DIV/0!
PBT Before EO 517.31 909.27 -43 3087.19 3306.73 -7
EO #DIV/0! -177.72 -100
PBT after EO 517.31 909.27 -43 3087.19 3129.01 -1
Tax provision^ 177.4 327.27 -46 1102.15 1007.15 9
PAT 339.91 582 -42 1985.04 2121.86 -6
Total comprehensive income
Share of profit/loss of associates 20.7 36.4 -43 113.09 138.07 -18
Net Profit 360.6 618.4 -42 2098.13 2259.93 -7
EPS* 4.6 7.8 6.6 7.5
* Annualized On Current Equity Of Rs 315.79 Crore.
Face Value: Rs 1
^ Tax Includes Provision For Income Tax And Fringe Benefit Tax
Var. (%) Exceeding 999 Has Been Truncated To 999
LP: Loss To Profit 
PL: Profit To Loss
EO: Extraordinary Items
EPS Is Calculated After Excluding EO And Relevant Tax
Figures In Rs Crore
Source: Capitaline Corporate Database

Motherson Sumi Systems: Consolidated Segment Results

 

1906(3) 1806(3) Var.(%) 1903(12) 1803(12) Var.(%)
Segment Revenue
MSSL Standalone 1842.88 2004.15 -8 7581.3 7667.31 -1
SMR 3191.30 3257.32 -2 13180.9 12114.22 9
SMP 8467.83 6404.19 32 30179.12 26163.59 15
PKC 2571.61 2390.41 8 9643.05 7938.86 21
Others 1130.85 1112.23 2 4507.5 3975.53 13
Total Segment Revenue 17204.47 15168.30 13 65091.82 57859.51 12
Less : Inter-Segment Revenue 411.94 392.84 5 1568.94 1339.21 17
Net Sales 16792.53 14775.46 14 63522.88 56520.30 12
Segment Results
PBIT
MSSL Standalone 263.55 297.94 -12 1103.56 1161.99 -5
SMR 232.85 266.39 -13 1096.78 1060.81 3
SMP -86.84 228.17 -138 358.3 985.57 -64
PKC 183.17 160.28 14 601.69 308.65 0
Others 47.36 24.98 90 176.76 41.75
Total 640.09 977.76 -35 3337.09 3558.77 -6
(II)Others #DIV/0! #DIV/0!
Total Segment Results 640.09 977.76 -35 3337.09 3558.77 -6
Less : Inter-Segment eliminations #DIV/0! #DIV/0!
Net Segment Result 640.09 977.76 -35 3337.09 3558.77 -6

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