MOTHERSON SUMI Announces Quarterly Results (1QFY20); Net Profit Down 41.6%

Fri, 16 Aug

MOTHERSON SUMI has announced its results for the quarter ended June 2019. Here is a detailed performance review of the same:

MOTHERSON SUMI Quarterly Financials

No. of Mths Qtr. Ending		3 Jun-18*	3 Mar-19*	3 Jun-19*	QoQ Change	YoY Change
Net Sales	Rs m	147,755	171,695	167,925	-2.2%	13.7%
Other income	Rs m	447	682	547	-19.7%	22.5%
Turnover	Rs m	148,201	172,376	168,473	-2.3%	13.7%
Expenses	Rs m	134,458	159,267	156,218	-1.9%	16.2%
Gross profit	Rs m	13,297	12,639	11,707	-7.4%	-12.0%
Depreciation	Rs m	3,646	5,518	5,522	0.1%	51.5%
Interest	Rs m	1,005	1,030	1,559	51.4%	55.2%
Profit before tax	Rs m	9,093	6,773	5,173	-23.6%	-43.1%
Tax	Rs m	3,273	2,479	1,774	-28.5%	-45.8%
Profit after tax	Rs m	5,820	4,293	3,399	-20.8%	-41.6%
Gross profit margin	%	9.0	7.4	7.0
Effective tax rate	%	36.0	36.6	34.3
Net profit margin	%	3.9	2.5	2.0

Year-on-Year Performance:

• The company's operating income during the quarter grew 13.7% on a year-on-year (YoY) basis. The expenses were up by 16.2% YoY during the same period.
• The company's operating profit declined by 12.0% YoY during the quarter. Consequently, operating profit margins witnessed a decline and stood at 7.0% in 1QFY20 as against 9.0% in 1QFY19.
• Depreciation charges increased by 51.5% and finance costs increased by 55.2% YoY, respectively.
• Other income increased by 22.5% YoY during the quarter.
• Net profit for the quarter declined by 41.6% YoY. Net profit margins during the quarter declined from 3.9% in 1QFY19 to 2.0% in 1QFY20.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter fell 2.2% on a quarter-on-quarter (QoQ) basis. The expenses were down by 1.9% QoQ during the same period.
• The company's operating profit declined by 7.4% QoQ during the quarter. Consequently, operating profit margins witnessed a decline and stood at 7.0% in 1QFY20 as against 7.4% in 4QFY19.
• Net profit for the quarter declined by 20.8% QoQ, while net profit margins declined from 2.5% in 4QFY19 to 2.0% in 1QFY20.

To see how MOTHERSON SUMI has performed over the last eight quarters,please visit here.

MOTHERSON SUMI Share Price Performance

Over the last one year,MOTHERSON SUMI share price has moved down from Rs 200.3 to Rs 98.7, registering a Loss of Rs 101.7 or around 50.8%.

Overall, the S&P BSE SENSEX is down 1.4% over the year.

Current Valuations

At the current price of Rs 98.7, the price to earnings (P/E) ratio of MOTHERSON SUMI stands at 17.7 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 2.8 times.