Auto ancillary company Motherson Sumi Systems on February 12 reported a strong performance for the December quarter, with earnings beating estimates. The compnay’s consolidated profit jumped nearly four-fold to Rs 1,268.3 crore for the quarter, compared to Rs 340 crore in the year-ago period, driven by strong operating performance in all segments.
Consolidated revenue from operations grew by 13.9 percent year-on-year to Rs 17,092.4 crore in Q3FY21, backed by robust standalone performance and impressive performance at SMRP BV level.
“Our global teams have put in tremendous efforts in challenging conditions to ensure uninterrupted supplies to our customers. These quarterly numbers are reflection of their hard work as well the trust of our customers on Motherson,” chairman Vivek Chaand Sehgal said.
Numbers were ahead of analysts’ estimates. A CNBC-TV18 poll has pegged profit was at Rs 450 crore on a revenue of Rs 16,791 crore.
The company said operations had normalised, with most facilities running at pre-COVID levels. “Indications of positive consumer sentiments reflected by increased demand globally. There has been sustained improvements in the performance of greenfield plants with a continued focus on cost reduction and efficiency improvements.”
Consolidated earnings before interest, tax, depreciation and amortisation (EBITDA) surged 60.7 percent to Rs 1,795.5 crore and the margin expanded 300 bps to 10.5 percent compared to the corresponding period that were higher than CNBC-TV18 poll estimates of Rs 1,661 crore and 9.8 percent, respectively.
With strong operating cash flows, net debt was lowest in fourteen quarters, said Motherson Sumi in its BSE filing.
SMRPBV, a joint venture between Motherson Sumi Systems and Samvardhana Motherson International, reported a 3 percent growth in revenue and 69 percent YoY increase in EBITDA in Q3FY21.
Samvardhana Motherson Reflectec (SMR), the rear-view mirror system and intelligent camera technologies manufacturer for the automotive industry, registered a 2 percent year-on-year growth in revenue and 24 percent increase in EBITDA.
Samvardhana Motherson Peguform (SMP), which makes interior and exterior modules for the automotive industry, reported a 4 percent year-on-year growth in revenue and a massive 102 percent rise in EBITDA in the quarter ended December 2020.
Motherson Sumi received a tax credit of Rs 109.2 crore in Q3FY21 against tax expenses of Rs 96.8 crore in the corresponding period.
The stock price rallied 7.11 percent to Rs 191.95 on the BSE at 1404 hours IST.
News Source:- Moneycontrol