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Motherson Sumi slips after weak Q3 performance

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Capital Market
Last Updated : Feb 11 2022 | 2:31 PM IST

Motherson Sumi Systems fell 1.61% to Rs 177.50 after the company reported 69% fall in consolidated net profit to Rs 245.08 crore in Q3 FY22 from Rs 798.38 crore in Q3 FY21.

Total revenue from operations declined 6% YoY to Rs 16,117.51 crore during the quarter.

"QoQ comparison is a better representation of the supply chain volatility and elevated costs faced by the industry," the company's said in a statement.

As compared with Q2 FY22, the company's net profit and total revenue are higher by 15% and 13%, respectively.

EBITDA in Q3 FY22 was Rs 1,383 crore, up by 14% from Rs 1,208 crore in Q2 FY22. EBITDA margin was 8.2% in Q3 FY22 as against 8.1% in Q2 FY22.

Motherson Sumi's debt position has deteriorated in the December 2022 quarter as debt-to-EBITDA ratio rose to 1.8 from 1.7 in the September 2022 quarter.

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The company's net debt in the quarter Q3 FY22 was Rs 8,739 crore as against Rs 7,627 crore in Q2 FY22.

Vivek Chaand Sehgal, chairman, Motherson Sumi Systems, said,These results are an indication of the resilience of our business and the efforts of our teams globally under challenging market conditions. While the global supply chain shortages have eased partially, challenges from higher costs remain.

We are optimistic that the industry situation will gradually improve further in the upcoming months. In this quarter we have received the final NCLT approval which now gives effect of the proposed re-organisation and lays the path for future growth through Motherson 2.0."

Motherson Sumi Systems is a specialised automotive component manufacturing companies for OEMs.

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First Published: Feb 11 2022 | 1:27 PM IST

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