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Motherson Sumi System Q1FY22 Result Analysis

Motherson Sumi System Q1FY22 Result Analysis

Published on 19 August 2021 Views 84 Comments 0

Standalone Q1FY22 results                                          

  • The standalone revenue for Q1FY22 stood at Rs. 1,114 crores, a growth of 154.3% YoY. The revenue declined by (-12.2%) on a QoQ basis.
  • Operating profit stood at Rs. 194 crores. The company suffered a operating loss during of Rs. (-100) crores during Q1FY21. The operating profit declined by (-1.5%) on QoQ basis.
  • The operating profit margins stood at 17% in Q1FY22 as compared to 16% in Q4FY21, a growth of 100 bps.
  • The company registered a PAT of Rs. 181 crores as compared to a loss of Rs. (-125) crores in Q1FY21. PAT declined by (-26.1 %) on QoQ basis.

Consolidated Q1FY22 results

  • The consolidated revenue for Q1FY22 stood at Rs. 16,157 crores, a growth of 90% YoY. The revenue declined by (-4.8%) on a QoQ basis.
  • Operating profit stood at Rs. 1,375 crores as compared to operating loss of Rs. (-671) crores in Q1FY21. The operating profit declined by (-22.9%) on QoQ basis.
  • The operating profit margins stood at 9% in Q1FY22 as compared to 11% in Q4FY21, a decline of -200 bps.
  • The company registered a PAT of Rs. 290 crores as compared to a loss of Rs. (-810) crores in Q1FY21. PAT declined by (-59.4 %) on QoQ basis.
  • The performance of the company was impacted by COVID situation in India, supply side problems in international regions, one time expense in PKC and a sharp increase in copper prices.

Con-call Highlights

  • The demand of PVs and CVs is strong. The company expects good recovery in demand, majorly in North America and European markets.
  • SMRPBV has won new orders amounting to EUR 4.5 billion. The contribution of EVs to order book is close to 25%.
  • Headwinds could be caused due to OEM production due to global supply chain disruption and semiconductor shortages in near term.
  • The company expects the situation to improve from H2FY22 onwards.
  • SMP’s greenfield plants are improving. Plant in Hungary saw a bigger impact due to supply chain issues.
  • Lag in copper price pass, component shortages, high logistic costs and high product launch costs were the reasons due to which PKC performance got impacted.
  • PKC has strong order book. Disruptions are caused by hurricane in Texas and floods in Europe.
  • PKC is also working with its customers on electric trucks.
  • Consolidated net debt increased due to higher working capital.
  • The company said the CAPEX for FY22 would be close to Rs. 2,000 crores.
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