Motherson weathers COVID storm, production picked up

Motherson weathers COVID storm, production picked up in June 20 with stronger demand sighted for Quarter 2,High level of liquidity maintained.

Motherson Sumi Systems Limited (MSSL) today announced financial results for its fiscal 2020-21 first quarter, which ended on 30^th June 2020.

Highlights

     Q1FY21 results are severely impacted by COVID 19 pandemic, hence results are not comparable with previous periods.

•      Gradual ramp up in plants globally with 84% of our plants are running at more than 50% capacity.

•      Strong Demand sighted for Quarter2; Encouraged by consistent improvement at Greenfields plants of SMP

•      Strong liquidity position, with focus on conserving cash

•      Lenders to SMRP BV , company’s subsidiary unanimously consented  to amend definitions under RCF, and Term loan facilities related to computation of  Net Leverage covenant by excluding EBITDA performance of  April – June 20 quarter till March 21

Commenting on results, Mr Vivek Chaand Sehgal, Chairman, MSSL said, “Coronavirus pandemic has created unprecedented challenges for the global automotive industry. Lockdown in various parts of the world severely dented demand for automobile sector in the first quarter of the fiscal. Our topmost concern and focus during this period were the well-being and safety of our employees across all our plant locations and we worked on a war footing to put robust safety protocols in place.  We thank our team members globally who worked very hard under these challenging conditions to ensure uninterrupted supplies to our customers.

However, even though first quarter was a wash out, economies have started witnessing green shoots of recovery. Our teams and plants across the globe have also resumed operations and are working closely with our customers to fulfil their requirements. We now expect demand for the auto industry to gain momentum in the coming quarters of this fiscal year”