Motherson Sumi Systems net profit boosts by 62.34 per cent in Q1FY16

Motherson Sumi Systems (MSSL) announced its June 2015 quarter results. The company's consolidated revenue increased by 11.84 per cent to Rs 9385 crore in Q1FY16 as compared to same period in previous financial year. Considering segment wise revenue MSSL earned around 97 per cent from Automotive segment and remaining 3 per cent from Non-Automotive segment during June 2015 quarter.

MSSL's total expenditure increased by 11.58 per cent to Rs 8552 crore in Q1FY16 on yearly basis. The company's total expenditure increased predominantly due to a 6.14 per cent increment in raw material prices, a 16.71 per cent increment in employee expenses, a 12.11 per cent increment in other expenses during Q1FY16.

The MSSL's EBITDA boosted by 14.58 per cent to Rs 833 crore in Q1FY16 compared to same period in previous fiscal year. The company's EBITDA margin expanded by 22 basis points to 8.88 per cent in Q1FY16 on yearly basis. Its EBIT increased by 17.87 per cent to Rs 598 crore in Q1FY16 on yearly basis though its depreciation expense increased by 6.99 per cent to Rs 234.62 crore during the quarter. MSSL's PBT also increased by 30.99 per cent to Rs 530 crore in Q1FY16 on yearly basis though interest expense increased by 10.09 per cent to Rs 68.31 crore during the quarter. The company's net profit rose by 62.34 per cent to Rs 267 crore in Q1FY16 compared to same period in previous fiscal year. Its net profit margin expanded by 88 basis points to 2.84 per cent in Q1FY16 on yearly basis. The Samvardhana Motherson Automotive System Group BV raised 10 year bonds of Euro 100 million for 3.7 per cent per annum in June 2015. The company's consolidated debt increased by 17.13 per cent to stood at Rs 3794 crore in Q1FY16 on quarterly basis.

MSSL shareholding pattern indicates that FII holdings expanded by 31 basis points to 18.61 per cent and DII holdings contracted by 1 basis point to 5.19 per cent during Q1FY16. The stock declined by 5 per cent when results declared on August 6,2015. The share price of the company on BSE decreased by 6.32 per cent and trading at Rs 350 on intraday basis.

The MSSL's 14 pre declared plants are under different stages of completion. The company also initiated 6 new plant expansions in USA,Europe,China,South Korea and India. Its subsidiary SMP is nominated in the Volkswagen Group Procurement Strategic Partners (Future Automotive Supply Tracks). 

MSSL is the flagship company of the Samvardhana Motherson Group, established in 1986. It is a joint venture between Samvardhana Motherson Group and Sumitomo Wiring Systems (Japan). The company operates in the majorly in automotive and non-automotive segments. MSSL's broad range of products are manufactured in more than 170 facilities and 24 design centres across the globe by over 70,000 qualified professionals. MSSL is currently the largest auto ancillary in India and is also ranked 55th in global auto component suppliers.