Motherson Sumi Systems (MSSL) slipped 1.24% to Rs 103.60 after a consolidated net loss of Rs 1,191.65 crore in Q1 June 2020 as compared with net profit of Rs 360.64 crore in Q1 June 2019.
Consolidated net sales slumped 49.36% to Rs 8,503.89 crore in Q1 June 2020 over Q1 June 2019. Pre-tax loss stood at Rs 1,405.96 crore in Q1 June 2020 compared with pre-tax profit of Rs 538.04 crore incurred in Q1 June 2019. Current tax expense for the quarter tumbled 92.30% at Rs 21.07 crore as against Rs 273.91 crore in Q1 June 2019. The Q1 earnings were announced during market hours today, 11 August 2020.
The Q1 FY21 results were severely impacted by COVID-19 pandemic. There is gradual ramp up in plants globally with 84% of Motherson Sumi Systems' (MSSL) plants running at more than 50% capacity. The company expects strong demand in second quarter encouraged by consistent improvement at greenfields plants of SMP. The firm has a strong liquidity position and is currently focusing on conserving cash.
Speaking on the Q1 results, Vivek Chaand Sehgal, the chairman of MSSL, has said that: "Coronavirus pandemic has created unprecedented challenges for the global automotive industry. Lockdown in various parts of the world severely dented demand for automobile sector in the first quarter of the fiscal. Our topmost concern and focus during this period were the well-being and safety of our employees across all our plant locations and we worked on a war footing to put robust safety protocols in place. We thank our team members globally who worked very hard under these challenging conditions to ensure uninterrupted supplies to our customers. However, even though first quarter was a wash out, economies have started witnessing green shoots of recovery. Our teams and plants across the globe have also resumed operations and are working closely with our customers to fulfil their requirements. We now expect demand for the auto industry to gain momentum in the coming quarters of this fiscal year," he added.
Motherson Sumi Systems is one of the world's leading specialised automotive component manufacturing companies for original equipment manufacturers.
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