Motherson Sumi Q4 Results: Net Profit Declines By 68.4% To Rs 135.66 Cr

Motherson Sumi Systems Limited (MSSL) has announced financial results for its fiscal 2019-20 fourth quarter, which ended on 31st March 2020.

Overall performance is affected by OEM plant closures due to the covid-19 pandemic, especially in China and in parts of Europe;

•       Debt levels are lowest in previous ten quarters, result of prudent financial management;

•       Highest dividend pay-out by the company;

•       The company has maintained Strong liquidity in this difficult environment;

•       Robust Order Book of Rs. 107,122 crores (Euro 13.6 billion) at SMRP BV level;

•       New orders worth Rs. 43,321 crores. (Euro 5.5 billion) won during the year, while orders worth Rs. 79,554 crores (Euro 10.1 billion) went into execution.

Commenting on results, Mr Vivek Chaand Sehgal, Chairman, MSSL said “Our consolidated revenues for this fiscal year have remained stable. Considering that global automotive sales have declined in the same period and that the coronavirus pandemic was already impacting China and parts of Europe in the Fourth Quarter, this is a strong performance under the circumstances. We are encouraged by the fact that our large Greenfield projects have started to contribute positively to our revenues. We are currently focused on finding solutions to the challenges we face in our Tuscaloosa operations in close coordination with our customer. Most importantly, we have a robust order book, which reflects a continued trust and commitment from our customers.  While there has been a lot of uncertainty in the market, it’s expected that the worst of the pandemic will fall in the next few quarters. The company has taken measures to manage cost and liquidity and we believe the strong trust our customers place in us, evident from our order book growth, will help to absorb the shock (if any) better and will also amplify our recovery.”