Motherson Sumi Systems reported 43% decrease in its consolidated net profit at Rs 429.3 crore for thefourthquarter ended Mar 2019. The company had posted a net profit of Rs 757.5 crore during the same period of the previous fiscal. Net sales during the period under review stood at Rs 17,169.47 crore as against Rs 15,407.83 crore in the year-ago period, up 11%. Poor performance at the operational level coupled with steep hike in depreciation cost took a toll on bottomline. Bottomline would have hit further if not forrise in other income. Commenting on results, Mr Vivek Chaand Sehgal, Chairman, MSSL saidWe are very grateful to our customers for their continued trust which helped us in closing the year onan all-time high revenue for MSSL. We have achieved strong order book of over Rs. 1.47 lac crores,which brings us great opportunities to further serve our customers globally. It's heartening to see thatwe have generated higher net free cash in an uncertain market condition despite ramp up of new largeplants at Tuscaloosa and Kecskemet. We are committed to create long term value for our allstakeholders.
Quarterly Performance:
During the fourth quarter endedMarch 2019, domestic salesfell 7.9% and sales outside India grew by 13.53%.
During the quarter, Standalone revenues fell 12% and EBITDA fell 12%.SMR revenues grew 5% but EBITDA fell 7%. SMP revenues grew by 21% but it incurred a loss of Rs 129.92 crore vis a vis a profit of Rs 310.03 crore.
The operating profit margin on a consolidated basis fell 240bps to 6.8% due to increased employee and other cost.Thus the operating profit decreased by 18% to Rs 1169.01crore. Raw material costs, as % to sales net stock adjusted, fell 330 bps to 56.4% during the quarter. The employee expenses costs rose 360 bps to 23.2%. Other cost rose 160 bps at 11.7%.
Following 11% rise in other income to Rs 68.17 crore, PBIDT fell 16% to Rs 1237.18 crore. The interest cost fell 9% at Rs 102.99crore while depreciation cost rose 47% to Rs 478.02 crore. Followingnil EO expense is a vis Rs 20.66 crore EO expense in previous year, PBT after EO fell 36% to Rs 656.17 crore. Following14%drop in tax provision (960 bps rise in tax rate), PAT fell 44% at Rs 408.23 crore.
Full Year Performance:
For the period ended FY 19, total sales grew 13% to Rs 63522.88 crore. While domestic sales rose 1.3% and sales outside India grew by 13.1%.
During the period, Standalone revenues fell 1% and EBITDA fell 5%. SMR revenues grew 9% and EBITDA grew 3%. SMP revenues grew by 15% and EBITDA fell 64%.
The operating profit margin on a consolidated basis fell 70 bps at 7.9% due to increased staff cost and other expenses. Thus the operating profit increased by 4% to Rs 5002.9crore. Raw material costs, as % to sales net stock adjusted, fell 330 bps to 57.1% during thefull year period. The employee expenses costs rose 270 bps to 22.2%. Other cost rose 120 bps at 11.4%.
Following 29%rise in other income to Rs 220.18crore, PBIDT grew 5% to Rs 5223.1 crore. The interest cost rose 3% at Rs 423.15 crore while depreciation cost rose 34% to Rs 1712.74 crore. Following nil EO expense is a vis Rs 177.72 crore EO expense in previous year, PBT after EO fell 1% to Rs 3087.19 crore. Following 9% rise in tax provision (360 bps rise in tax rate), PAT fell 6% at Rs 1985.04 crore.
The scrip is currently trading around Rs 125 at BSE.
Motherson Sumi Systems: Consolidated Results
| Particulars | 1903(3) | 1803(3) | Var.(%) | 1903(12) | 1803(12) | Var.(%) |
| | | | | | |
| Total Operating Income | 17169.47 | 15407.83 | 11 | 63522.88 | 56293.32 | 13 |
| OPM(%) | 6.8 | 9.2 | | 7.9 | 8.6 | |
| OP | 1169.0 | 1418.9 | -18 | 5002.9 | 4826.9 | 4 |
| Other Income | 68.17 | 61.53 | 11 | 220.18 | 170.09 | 29 |
| PBIDT | 1237.2 | 1480.4 | -16 | 5223.1 | 4997.0 | 5 |
| Interest | 102.99 | 112.99 | -9 | 423.15 | 410.8 | 3 |
| PBDT | 1134.19 | 1367.4 | -17 | 4799.93 | 4586.22 | 5 |
| Depreciation | 478.02 | 325.62 | 47 | 1712.74 | 1279.49 | 34 |
| PBT before forex gain/loss | 656.17 | 1041.78 | -37 | 3087.19 | 3306.73 | -7 |
| Forex gain/loss | | | | | | |
| PBT Before EO | 656.17 | 1041.78 | -37 | 3087.19 | 3306.73 | -7 |
| EO | | -20.66 | -100 | | -177.72 | -100 |
| PBT after EO | 656.17 | 1021.12 | -36 | 3087.19 | 3129.01 | -1 |
| Tax provision^ | 247.94 | 287.7 | -14 | 1102.15 | 1007.15 | 9 |
| PAT | 408.23 | 733.42 | -44 | 1985.04 | 2121.86 | -6 |
| Total comprehensive income | | | | | | |
| Share of profit/loss of associates | 21.1 | 24.1 | -12 | 113.09 | 138.07 | -18 |
| Net Profit | 429.3 | 757.5 | -43 | 2098.13 | 2259.93 | -7 |
| EPS* | 5.4 | 9.8 | | 6.6 | 7.5 | |
* Annualized On Current Equity Of Rs 315.79 Crore.
Face Value: Rs 1
^ Tax Includes Provision For Income Tax And Fringe Benefit Tax
Var. (%) Exceeding 999 Has Been Truncated To 999
LP: Loss To Profit
PL: Profit To Loss
EO: Extraordinary Items
EPS Is Calculated After Excluding EO And Relevant Tax
Figures In Rs Crore
Source: Capitaline Corporate Database |
Motherson Sumi Systems: Consolidated Segment Results
| 1903(3) | 1803(3) | Var.(%) | 1903(12) | 1803(12) | Var.(%) |
| | | | | | |
| Segment Revenue | | | | | | |
| | | | | | |
| | | | | | |
| MSSL Standalone | 1851.43 | 2107.05 | -12 | 7581.3 | 7667.31 | -1 |
| SMR | 3436.62 | 3284.57 | 5 | 13180.9 | 12114.22 | 9 |
| SMP | 8553.61 | 7088.59 | 21 | 30179.12 | 26163.59 | 15 |
| PKC | 2540.54 | 2177.44 | 17 | 9643.05 | 7938.86 | 21 |
| Others | 1184.27 | 1122.14 | 6 | 4507.5 | 3975.53 | 13 |
| Total Segment Revenue | 17566.47 | 15779.79 | 11 | 65091.82 | 57859.51 | 12 |
| Less : Inter-Segment Revenue | 397.00 | 371.96 | 7 | 1568.94 | 1339.21 | 17 |
| Net Sales | 17169.47 | 15407.83 | 11 | 63522.88 | 56520.30 | 12 |
| | | | | | |
| | | | | | |
| Segment Results | | | | | | |
| PBIT | | | | | | |
| MSSL Standalone | 297.37 | 338.84 | -12 | 1103.56 | 1161.99 | -5 |
| SMR | 303.34 | 326.14 | -7 | 1096.78 | 1060.81 | 3 |
| SMP | -129.92 | 310.03 | PL | 358.3 | 985.57 | -64 |
| PKC | 169.9 | 78.23 | 117 | 601.69 | 308.65 | 0 |
| Others | 65.03 | 34.96 | 86 | 176.76 | 41.75 | |
| Total | 705.72 | 1088.2 | -35 | 3337.09 | 3558.77 | -6 |
| (II)Others | | | #DIV/0! | | | #DIV/0! |
| Total Segment Results | 705.72 | 1088.2 | -35 | 3337.09 | 3558.77 | -6 |
| Less : Inter-Segment eliminations | | | #DIV/0! | | | #DIV/0! |
| Net Segment Result | 705.72 | 1088.2 | -35 | 3337.09 | 3558.77 | -6 |
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