The company says that there has been improvement in its global operations, with around 80 percent of its facilities running at over 75 percent capacity, indicating that things have come back to near normal.
10 Nov 2020 | 4744 Views | By Autocar Pro News Desk
Tier 1 major Motherson Sumi Systems has announced its financial results for Q2 FY2021, with revenue of Rs 14,952 crore, down 6 percent (Q2 FY2020: Rs 15,924 crore), profit after tax of Rs 337 crore (-12% YoY), compared to Rs 384 crore for the same period last year.
The company says that there has been improvement in its global operations, with around 80 percent of its facilities running at over 75 percent capacity, indicating that things have come back to near normal. It has also seen an improved performance at its Greenfield plants, marginal EBITDA positive for first time due to intensified operational improvement activities.
Motherson Sumi Systems says as part of its reorganisation plans, all activities are as per original time plan. During the quarter it has incorporated Motherson Sumi Wiring India as a wholly owned subsidiary of the company for domestic wiring harness division.
The Tier 1 supplier has raised over Rs 3,000 crore funds at substantially lower cost versus the current borrowing costs. The company issued 6.65% NCD which was upsized from Rs 1,500 crore to Rs 2,130 crore using green-shoe option due to overwhelming demand. It has got a 5-year term loan of Rs 1,000 crore (drawn Rs 850 crores) at very competitive pricing for enhancing liquidity. The Tier 1 supplier says repayment of $375 million (Rs 2,775 crore) out of $400 million (Rs 2,960 crore), due in December 21 using the proceeds from NCDs and cash of SMRPBV (exceptional cost of Euro 5 million (Rs 41 crore) booked during the quarter).
With improved operating performance and debt repayments, the company has reduced its net debt from Rs 9,083 crore to Rs 7,512 crore between June 30, 2020 to September 30th, 2020. Further liquidity also enhanced from Rs 10,037 crore to Rs 11,629 crore during the same period. Commenting on results, Vivek Chaand Sehgal, chairman, Motherson Sumi Systems said, “Global automotive industry is on a path to recovery in post-Covid world. We are seeing surge in demand across the globe. Our teams are geared up to fulfil the demands of our customers. We believe that in the upcoming quarters, strong traction will continue to be there. Operational improvements done by our teams across the globe have resulted in improved performance of our plants. Above all, the health of our employees remains our top priority.”