Motherson Sumi Posts 21% Fall In Q1 Profit

New Delhi: Auto component major Motherson Sumi Systems Ltd on Thursday reported a 20.95 per cent decline in consolidated net profit at Rs 347.32 crore for the first quarter that ended on June 30, 2017. The company had posted a consolidated net profit of Rs 439.36 crore for the corresponding period last fiscal year, Motherson Sumi Systems Ltd (MSSL) said in a filing to the BSE. The company said that during the quarter, it incurred an exceptional expense of Rs 150 crore as redemption premium and unamortised transaction costs for prepayment of senior secured notes amounting to 500 million euros due in 2021.

Gross sales during the period under review was at Rs 13,194.80 as against Rs 10,626.27 crore in the year-ago quarter, a growth of 24.17 per cent.

Gross sales within India during the first quarter were at Rs 1,824.97 crore, as against Rs 1,465.98 crore in the corresponding period last fiscal year.

On the other hand, gross sales from outside India were at Rs 11,369.83 crore as against Rs 9,060.29 crore. 

Commenting on the company's activities during the quarter, MSSL chairman Vivek Chaand Sehgal said: "Our new plant build-ups are progressing well. In Hungary and the USA, SMP is nearing the scheduled customer launch dates with two large facilities."

These will further strengthen the company's ability to meet the requirements of customers in these regions, he added.

MSSL said that globally, 10 plants are at different stages of completion out of which three new plants have been added, while two plants have started operations since the previous announcement made during the results for December 2016 quarter.

At 1:29 pm, shares in Motherson Sumi Systems were trading 7.85 per cent lower at Rs 384 apiece on the BSE, whose benchmark Sensex index was down 158 points or 0.49 per cent.