Motherson Sumi Q2 net profit up 3% to Rs 388 crore

Auto component manufacturer Motherson Sumi Systems on November 10 reported a 2.7 percent rise in consolidated net profit at Rs 387.93 crore for the second quarter ended September 30. The company had posted a net profit of Rs 377.73 crore in the July-September period of previous fiscal.

Total revenue from operations, however, declined to Rs 14,957.21 crore during the quarter under review as against Rs 15,259.74 crore in the year-ago period, Motherson Sumi Systems Ltd (MSSL) said in a statement.

The company said that around 80 percent of its facilities are running at over 75 percent capacity, indicating that things have come back to near normal.

With improved operating performance and debt repayments, net debt reduced from Rs 9,083 crore to Rs 7,512 crore between June 30, 2020 to September 30, 2020, it said. Further, liquidity also enhanced from Rs 10,037 crore to Rs 11,629 crore between June 30 to September 30 this year, it added. Further, liquidity also enhanced from Rs 10,037 crore to Rs 11,629 crore between June 30 to September 30 this year, it added.

"Global automotive industry is on a path to recovery in the post COVID world. We are seeing a surge in demand across the globe. Our teams are geared up to fulfil the demands of our customers," MSSL Chairman Vivek Chaand Sehgal said. The company believes that strong traction will continue to be there in the upcoming quarters, he added.