InvestorQ : How do you see Motherson Sumi after the Jun-20 quarterly results?
prachi Patwardhan made post

How do you see Motherson Sumi after the Jun-20 quarterly results?

Answer
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1 month ago


India’s largest auto ancillary company, Motherson Sumi Systems, reported net loss of Rs.1191.65 crore for Jun-20 quarter on account of the Coronavirus pandemic. It had reported a net profit of Rs.361 crore in the Jun-19 quarter.

For the Jun-20 quarter, Motherson Sumi reported total revenues from operations down by nearly 50% at Rs.8504 crore. The operations at their plants were suspended for most of the quarter and resumed only gradually from June onwards.

It must be said that Motherson has been managing the situation proactively. It took several steps to address the operational challenges, including availing of benefits under the various government support schemes in respective countries where it operates.

MSSL has been gradually ramping up production globally with nearly 84% of the plants up and running but only at 50% capacity due to government restrictions as of now. MSSL may benefit from the fact that most economies are witnessing green shoots of recovery.