Moneycontrol
Aug 10, 2017 03:06 PM IST | Source: Moneycontrol.com

Motherson Sumi Q1 profit falls 21% on one-time loss; revenue surges 26%

Revenue during the quarter increased sharply by 25.8 percent to Rs 13,366.6 crore, including Rs 1,823 crore from PKC acquired recently.

Motherson Sumi Q1 profit falls 21% on one-time loss; revenue surges 26%

Moneycontrol News

Auto ancillary firm Motherson Sumi Systems missed analysts' expectations on bottomline as well as operational front for April-June quarter as consolidated profit fell 21 percent year-on-year to Rs 347.3 crore.

Profitability was impacted by one-time loss of Rs 150.15 crore, tax cost and weak operational performance by SMP that makes exteriors and interiors of cars.

Revenue during the quarter increased sharply by 25.8 percent to Rs 13,366.6 crore, including Rs 1,823 crore from PKC acquired recently.

The flagship company of the Samvardhana Motherson Group said the exceptional loss of Rs 150 crore was due to redemption premium and unamortised transaction costs on secured notes.

"On July 6, 2017, Samvardhana Motherson Automotive Systems Group BV (SMRP BV), a subsidiary company in Netherlands, issued 1.8 percent senior secured notes of euro 300 million due in 2024. The proceeds of these notes together with cash available have been utilised to prepay outstandin 4.125 percent senior secured notes of euro 500 million due in 2021. The call notice to prepay 4.125 percent senior secured notes amounting to euro 500 million was issued on June 22, 2017," the company explained.

EBITDA (earnings before interest, tax, depreciation and amortisation) spiked 28.9 percent to Rs 1,196 crore and margin expanded 20 basis points to 9.1 percent compared with same quarter last year, but missed analysts expectations due to higher depreciation (up 31 percent), finance (39 percent) and employee costs (28 percent).

Profit was estimated at Rs 525 crore and EBITDA at Rs 1,322 crore with margin at 9.9 percent for the quarter, according to average of estimates of analysts polled by CNBC-TV18.

Tax cost for the quarter was also higher at Rs 276.84 crore compared with Rs 167.70 crore in corresponding quarter of last fiscal.

SMP margin hit due to ramp-up of Audi plant that has coming into fructification, Vivek Chaand Sehgal, chairman of Motherson Sumi said in an interview to CNBC-TV18.

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Established in 1986, Motherson Sumi Systems (MSSL) is the flagship company of the Samvardhana Motherson Group.

Samvardhana Motherson Reflectec (SMR) makes external rearview mirrors for passenger cars and Samvardhana Motherson Peguform (SMP) manufactures interior and exterior products for automotive companies. Both are member of Samvardhana Motherson Group.

At 11:54 hours IST, the stock price was quoting at Rs 307.05, down Rs 22.95, or 6.95 percent amid high volumes on the BSE.
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