Motherson Sumi Systems Posted December 2014 Quarter Result

Motherson Sumi Systems (MSSL) announced its December 2014 quarter result. The company’s net sales for December 2014 quarter was higher by almost 15 per cent on yearly basis and 14 per cent on quarterly basis predominantly led by growth at SMP and SMR. In Euro terms, SMR and SMP business segments grew by 13 per cent and 19 per cent respectively during the quarter under review.

The EBITDA margins stood at 9.3 per cent during December 2014 quarter with an expansion of 20 basis points on sequential basis. Further, the EBITDA during December 2014 quarter showed 11 per cent growth on yearly basis but showed 17 per cent growth on sequential basis. The net profit of the company showed a growth of 23 per cent on yearly basis during the December 2014 quarter.

MSSL successfully closed the deal for purchase of assets of Scherer & Trier group (S&T). The company develops and manufactures high end surface finish aesthetic and engineering profiles and moulded parts made of thermoplastics and hybrid components made of metal and plastic. The current turnover of “Scherer & Trier” is in the range of Euro 240 million. MSSL’s progress of 14 new facilities is on schedule, 3 facilities completed and under commissioning phase. The company is expected these facilities to start contributing in coming quarters. Further on debt front too, the current net debt of MSSL is reduced to Rs 4711 crores during December 2014 quarter from Rs 5127 crores as reported during previous quarter, despite capex of almost Rs 600 crores on expansion across all global facilities.

Commenting on company’s performance, V C Sehgal, Chairman, Motherson Sumi Systems said, “The strong revenue growth, improved operational performance coupled with prudent financial management has resulted in the company consistently outperforming the market. As the global markets are also picking up, we expect the company to keep on delivering exceptional performance. We thank all our customers and stakeholders for reposing their trust in us.”

Motherson Sumi Systems (MSSL) is the flagship company of the Samvardhana Motherson Group. The company is a joint venture between Samvardhana Motherson Group and Sumitomo Wiring Systems (Japan). The acquisition of mirror business from Visiocorp (now renamed as Samvardhana Motherson Reflectec) and Peguform (now named Samvardhana Motherson Peguform) has helped MSSL evolve as one of the world’s leading manufacturers of automotive rear view mirrors and a leading manufacturers of instrument panels, bumpers and door trims in Europe. With a diverse global customer base comprising of almost all leading automobile manufacturers globally, the company has a presence in 25 countries across six continents.