MOTHERSON SUMI Announces Quarterly Results (1QFY22); Net Profit Up 131.0%

Thu, 12 Aug

MOTHERSON SUMI has announced its results for the quarter ended June 2021. Here is a detailed performance review of the same:

MOTHERSON SUMI Quarterly Financials

No. of Mths Qtr. Ending		3 Jun-20*	3 Mar-21*	3 Jun-21*	QoQ Change	YoY Change
Net Sales	Rs m	83,484	169,719	161,574	-4.8%	93.5%
Other income	Rs m	473	616	1,548	151.5%	227.2%
Turnover	Rs m	83,957	170,335	163,121	-4.2%	94.3%
Expenses	Rs m	88,990	152,496	149,374	-2.0%	67.9%
Gross profit	Rs m	-5,507	17,221	12,195	-29.2%
Depreciation	Rs m	6,994	7,568	7,513	-0.7%	7.4%
Interest	Rs m	1,101	1,365	1,208	-11.5%	9.7%
Profit before tax	Rs m	-13,128	8,904	5,022	-43.6%
Tax	Rs m	-1,914	656	1,548	135.8%
Profit after tax	Rs m	-11,214	8,247	3,475	-57.9%
Gross profit margin	%	-6.6	10.1	7.5
Effective tax rate	%	14.6	7.4	30.8
Net profit margin	%	-13.4	4.8	2.1

Year-on-Year Performance:

• The company's operating income during the quarter grew 93.5% on a year-on-year (YoY) basis. The expenses were up by 67.9% YoY during the same period.
• The company's operating profit declined by 321.5% YoY during the quarter. Consequently, operating profit margins witnessed a growth and stood at 7.5% in 1QFY22 as against 6.6% in 1QFY21.
• Depreciation charges increased by 7.4% and finance costs increased by 9.7% YoY, respectively.
• Other income increased by 227.2% YoY during the quarter.
• Net profit for the quarter increased by 131.0% YoY. Net profit margins during the quarter increased from -13.4% in 1QFY21 to 2.1% in 1QFY22.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter fell 4.8% on a quarter-on-quarter (QoQ) basis. The expenses were down by 2.0% QoQ during the same period.
• The company's operating profit declined by 29.2% QoQ during the quarter. Consequently, operating profit margins witnessed a decline and stood at 7.5% in 1QFY22 as against 10.1% in 4QFY21.
• Net profit for the quarter declined by 57.9% QoQ, while net profit margins declined from 4.8% in 4QFY21 to 2.1% in 1QFY22.

To see how MOTHERSON SUMI has performed over the last eight quarters,please visit here.

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MOTHERSON SUMI Share Price Performance

Over the last one year, MOTHERSON SUMI share price has moved up from Rs 116.9 to Rs 223.1, registering a Gain of Rs 106.2 or around 90.9%.

Overall, the S&P BSE SENSEX is up 43.5% over the year.

Current Valuations

At the current price of Rs 223.1, the price to earnings (P/E) ratio of MOTHERSON SUMI stands at 26.8 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 6.3 times.