Comments
Auto components major Motherson Sumi Systems on Friday reported a nearly four-fold jump in consolidated net profit from continuing and discontinued operations at Rs 1,268.31 crore in the third quarter ended December 31, 2020.
The company had posted a consolidated net profit from such operations of Rs 340.32 crore in the same period last fiscal, Motherson Sumi Systems Ltd (MSSL) said in a regulatory filing.
The company’s consolidated total revenue from operations during the period under review was Rs 17,092.44 crore. It had registered a consolidated revenue from operations of Rs 15,000.10 crore in the same period last fiscal.
MSSL said its board had on July 2, 2020, approved a group reorganisation plan that entails the demerger of the domestic wiring harness (DWH) business from MSSL into a new company Motherson Sumi Wiring India Ltd (MSWIL) and subsequent merger of SAMIL into MSSL to consolidate 100 per cent shareholding in Samvardhana Motherson Automotive Systems Group BV (SMRP BV) as well as to bring all auto component and allied businesses in Samvardhana Motherson International Ltd (SAMIL) under MSSL.
The scheme has been considered highly probable and demerger of DWH into MSWIL meets the criteria to be considered as discontinued operation, hence DWH business has been disclosed as discontinued operation in its consolidated financial results.
Motherson Sumi Systems Chairman Vivek Chaand Sehgal said, "Our global teams have put in tremendous efforts in challenging conditions to ensure uninterrupted supplies to our customers. These quarterly numbers are a reflection of their hard work as well the trust of our customers." During the quarter, MSSL said its operations have normalised, with most facilities running at pre-COVID levels. There are sustained improvements in performance of greenfield plants with a continued focus on cost reduction and efficiency improvements.
There are indications of positive consumer sentiments reflected by increased demand globally, it added.
On the outlook, the company said automobile manufacturers continue to work with suppliers, given challenges in supply of certain critical components.
"With the roll-out of the COVID-19 vaccine in different parts of the world, we are optimistic that demand and positive sentiments will improve in the upcoming quarters," Sehgal said.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.