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Motherson Sumi Systems reported a consolidated net profit (concern share) of Rs 290 crore in Q1 FY22 compared with net loss of Rs 810.45 crore in Q1 FY21.
Consolidated revenue from operations jumped 98% year-on-year to Rs 16,712 crore in Q1 FY22 as against Rs 8,431 crore in Q1 FY21. The auto ancillary company posted a profit before tax of Rs 609 crore in Q1 FY22 as against a pre tax loss of Rs 1,406 crore reported in Q1 FY21.The company posted a positive EBITDA of Rs 1,462 crore in Q1 FY22 compared with a negative EBITDA of Rs 585 crore in Q1 FY21. EBITDA margin improved to positive 8.7% in Q1 FY22 from negative 6.9% posted in the same period last year.
On the operational front, irregular production stoppages by OEMs globally due to supply chain constraints impacted the profitability of the company. The company said revenue was impacted in India due to OEM production shutdown for most part of May 2021 in the current quarter. Meanwhile, supply chain disruptions due to semi-conductor and other material shortages globally likely to be headwinds for OEM production in the near term, expected to improve from second half.
Commenting on the results, Vivek Chaand Sehgal, chairman of Motherson Sumi Systems said, We have witnessed many localised and unpredictable challenges such as lower OEM production due to unavailability of semi-conductor chips, higher commodity and logistics costs etc. in this quarter. Despite challenging market conditions, the team has been able to deliver good results. We expect these headwinds to ease in the upcoming quarters as demand for personal mobility remains strong.
The company's net debt stood at Rs 6,158 crore as of 30 June 2021 higher than Rs 4,807 crore in 31 March 2021 but lower than Rs 6,897 crore registered in March 2020. Motherson said it required higher working capital in Q1 due to irregular production trends by OEMs.
Motherson Sumi Systems is one of the world's leading specialised automotive component manufacturing companies for OEMs.
Shares of Motherson Sumi were down 2.08% at Rs 226.10 on BSE.
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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
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