Motherson Sumi reports Q1 net profit at Rs 367.65 crore

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Auto components major Motherson Sumi Systems Ltd (MSSL) on Tuesday reported a consolidated net profit of Rs 367.65 crore from continuing operations in the first quarter ended June 30.

The company had posted a consolidated net loss of Rs 1,121.60 crore from continuing operations in the same quarter last fiscal, MSSL said in a regulatory filing.

Consolidated total revenue from continuing operations stood at Rs 16,157.35 crore during the quarter under review. It was at Rs 8,348.35 crore in the year-ago period.

MSSL said its board of directors had on July 2, 2020, approved a group reorganisation plan which entailed demerger of the domestic wiring harness (DWH) business from it into a new company Motherson Sumi Wiring India Ltd (MSWIL).

“We have witnessed many localised and unpredictable challenges such as lower OEM production due to unavailability of semiconductor chips, higher commodity and logistics costs, etc in this quarter.” “Despite challenging market conditions, the team has been able to deliver good results. We expect these headwinds to ease in the upcoming quarters as demand for personal mobility remains strong,” MSSL Chairman Vivek Chaand Sehgal said.