The diversified group which is into multiple categories of automotive components, Noida-based Motherson Sumi Systems has reported a dip in its domestic revenues in the first quarter of the ongoing fiscal.
While the consolidated revenue stands at Rs 16,557 crore, crossing the Rs 16,000 crore mark for the third time in a row, and growing 14 percent (Q1 FY19: Rs 14,563 crore), the Tier 1 major has been badly hit by the major slowdown in the domestic market, leading to a drastic slump in its local revenue. During the quarter, the company reported PAT at Rs 332 crore, down 25 percent.
The company registered a stark 49.41 percent drop in its domestic revenues which closed at Rs 1,786 crore (Rs 1,870 crore). On the other hand, revenue from its businesses outside India grew 16.37 percent to Rs 14,771 crore (Rs 12,693 crore).
While Samvardhana Motherson Reflectec (SMR) - its ORVM business saw near-flat performance, clocking Euro 402 million (Rs 3,198.07 crore), there was a 35 percent uptick in Samvardhana Motherson Peguform (SMP), which clocked Euro 1,071 million (Rs 8,520.23 crore) in the quarter (Euro 792mn) including that from greenfields.
Commenting on results, Vivek Chaand Sehgal, Chairman, MSSL said, “Amidst challenging global market conditions, the Board recognised and appreciated the efforts of the teams who have worked very hard. The greenfield plants of SMP are showing slow continuous improvement and we expect the trend to continue provided there is no further global slowdown.”
“We are pleased with the continued robust performance of PKC Group as well as other businesses. We continue to focus on managing cash flows and debt, and in improving operational efficiency. We thank our customers for their continued trust in us,” he adds.
At the EBIDTA level, the consolidated group earnings dropped to Rs 1,277 crore from Rs 1,422 crore in FY19 (-10.19%), while PBT dropped 43.12 percent to Rs 517 crore (Rs 909 crore).