CONFERENCE CALL - from Capital Markets
Motherson Sumi Systems
Capex for first nine months has been around Rs 1500 crore
Motherson Sumi Systems (MSS) held a conference call on 09 February 2016 to discuss the first quarter earnings. The call was addressed by Vivek Chaand Sehgal, Chairman, Motherson Sumi, Mr GN Gauba, CFO , Mr Pankaj Mital, COO and the entire management team.
Key Points from the discussion:
Consolidated net profit rose 21% yoy to Rs 307.6 crore for quarter ended Dec 15. Consolidated revenue grew by 8% to Rs 9,860 crore during the quarter.
International sales accounted for almost 86% of the quarter’s revenue.
Motherson’s business is directly linked to customer’s performance. It does not sell anything in open market. So, the standalone business was affected a bit.
Capex for first nine months has been around Rs 1500 crore. Capex budget for the year has been Rs 2000 crore and the company is proceeding in line with that.
It is difficult to compute the losses arising out of Chennai floods.
At SMRPBV, revenue and operating profit growth continues to be strong, at 18% and 22% compared to year-ago quarter. Moreover, this growth comes despite the fact that SMRPBV has invested more in new plants than in the year-ago quarter.
SMR reported highest ever operating profit in a quarter and has crossed Euro 1 billion in revenues in less than 9 months period.
MSSL also announced update on 17 plants commissioned around the world, across its major product verticals, out of which 7 have been completed.