Motherson Sumi Systems Limited (MSSL) announced the financial results for its fourth quarter ending March 2021. Motherson Sumi is one of the world’s leading specialised automotive component manufacturing companies for OEMs.
Quarterly revenues of Rs. 17,844 crores, up by 19%; PAT of Rs. 714 crores, up by 290% and Quarterly EBITDA, up by 44% are some of the highlights of the financials.
Improvements in margins on Q-o-Q basis has largely been maintained while the performance on the standalone level shows a 33% growth in revenues and 38% growth in EBITDA.
Other notables are that the improved profitability and realisation of engineering revenues helped in freeing cash generation, leading to the lowest ever Debt/EBITDA ratio. Moody’s upgraded outlook while maintaining rating at Ba1.
The board recommended a dividend of Rs. 1.50 per share i.e., pay out of 45.6 % of consolidated PAT.
On the operational front, consolidated revenues in Q4FY21 are more than pre-COVID levels as industrial activity picked up globally, despite multiple headwinds such as chip shortage and higher commodity costs among others, the company has managed to sustain its profitability.
Among other highlights is that the shareholder approval for reorganisation received overwhelming majority. Second motion petition has been filed with NCLT.
Commenting on results, Vivek Chaand Sehgal, Chairman, Motherson Sumi Systems Ltd said, “The Q4 and FY21 results are reflection of the tremendous hard work that our teams have put in globally despite multiple challenges and sets the tone for us to achieve our stated Vision 2025 targets.”