Motherson Sumi Systems Ltd's Q2FY19 consolidated net profit declines 15% yoy to Rs371cr : Misses Estimates

The company’s consolidated revenue stood at Rs15,105cr, up 13% yoy and 2% qoq.

Nov 14, 2018 06:11 IST India Infoline Research Team

Motherson Sumi Systems Ltd Q2FY19

Consolidated Results Q2FY19: (Rs. in cr)

Q2FY19 YoY (%)
Revenue 15,104.97 12.6
EBITDA 1,300.10 5.8
EBITDA Margin (%) 8.6 [55]
Net Profit (reported) 371.07 [14.9]
***EBITDA margin change is bps

Auto ancillary maker, Motherson Sumi Systems Limited (MSSL) reported weak set of numbers in Q2FY19. Consolidated revenue was up 13% yoy (2% qoq) at Rs15,105cr, ahead of expectation of Rs14,197cr. EBITDA stood at Rs1,300cr, up 6% yoy (down 2% qoq) as lower raw material expenses (as % of sales) were offset by higher operating, manufacturing and employee expenses. EBITDA margin contracted 55bps yoy (39bps qoq) to 8.6%. EBITDA and EBITDA margin missed expectation of Rs1,386cr and 9.8% respectively. Interest expenses and tax rate were significantly higher during the quarter resulting in PAT decline of 15% yoy (16% qoq) to Rs371cr. Consolidated PAT missed estimate of Rs487cr.

Other Highlights
  • MSSL’s recent (August 2018) acquisition of Reydel Automotive Management B.V. (Reydel) was consolidated for the first time during Q2FY19.
  • Debt on consolidated books of the company jumped 49% w.r.t. March 31, 2018 to Rs14,127cr. D/E ratio moved up from 0.96x to 1.33x.

Technical View:

Motherson Sumi Systems Ltd is currently trading at Rs. 165.35, down by 0.85 points or 0.51% from its previous closing of Rs. 166.20 on the BSE.
The scrip opened at Rs. 167.70 and has touched a high and low of Rs. 173.70 and Rs. 163.25 respectively. So far 1,04,05,719 (NSE+BSE) shares were traded on the counter. The stock is currently trading above its 200 DMA.

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