Motherson Sumi sales up 19.5 %

Chennai, Nov 5 (IBNS) Motherson Sumi Systems Limited (MSSL) on Friday announced its Q2 FY11-12 results where its Consolidated Total Sales grew by 19.5 %.

Q2 Results FY 11-12 (all comparisons with Q2 FY10-11)

Consolidated Total Sales up by 19.5 %.

Consolidated Export Sales up by 23.6 %.

Consolidated Domestic Sales up by 13.4%.

SMR revenues in Euro terms grew by 13.4 % and by 21.6 % in Rupee terms

Exports from India posted healthy growth of 59.3 % as well as sales to customers from Outside India on consolidated basis grew by 23.6 %.

Commenting on the results, Vivek Chaand Sehgal, Vice-Chairman, Motherson Sumi Systems Ltd said: "This has been the toughest quarter in the recent history. Consolidated and standalone sales of MSSL grew by 19.5% and 18.6% respectively. Domestic Sales grew by 13.4 % and 14.2 % on consolidated and standalone respectively.

"This is despite the negative growth in the passenger car segment, unfortunate industrial relation situation at one of the company's largest customer - this has resulted in sales loss for our company and unutilized capacities."

There has also been huge volatility in Rupee and Euro vis-a-vis the US Dollar. The company has made full provision of unrealized exchange translation loss on long term loans.

Exchange loss on US Dollar Loans in India for the quarter accounted is Rs 41.9 crores (previous year quarter gain of Rs 2.8 crores) and on SMR US Dollar loans is Rs 19.5 crores (previous year quarter gain of Rs 3.6 crores).

MSSL and SMR have done major expansion of capacities. The second plant of SMR Hungary was inaugurated and sales commenced this quarter. The Brazil plant is ready; the unutilised expanded capacity has impacted the reported profitability of SMR.

Motherson Sumi Systems Limited (MSSL) is the flagship company of the Samvardhana Motherson Group and was established in 1986. It is a joint venture between Samvardhana Motherson Group and Sumitomo Wiring Systems (Japan).

MSSL is a focused, dynamic and progressive company providing customers with innovative and value-added products, services and solutions.