Motherson Sumi
Motherson Sumi posted a set of exuberant numbers for Q4Fy14. Its consolidated net sales for the quarter rose 26% (YoY) at Rs.8401 crore and net profit came in at Rs.302 crore, up 54% (YoY) and sequentially, it is up 21%. Operational efficiencies have most certainly improved but the substantial forex gain of Rs.70 crore also helped. EBITDA for the quarter came in at Rs.796 crore, up 38% and EBITDA margin rose from 8.7% to 9.6% (YoY). The fully integrated takeover in 2011 of Peguform group is obviously working well. The new entity post the Peguform acquisition is known as Samvardhana Motherson Peguform (SMP) and it has contributed 51% to the total topline. In terms of segment, automotive contributes the lions share – 98% of the net sales and the balance 2% from non-automotive.
The company ended FY14 with a consolidated net profit at Rs.765 crore, up 72%. The company has stated this was the highest ever earnings for the quarter as well for the year reported both on Consolidated as well on standalone basis . In fact its consolidated revenues of USS $ 5 billions for the year 2013-14 came in one year ahead of target for Vision 2015.
The company’s debt remains an issue though it has come down. As at 31st March 2014, its net debt has come down to Rs.3934 crore, down from Rs.4572 crore at end of 9MFy14. This net debt is now 9% lower than the debt at end of FY13. Despite this the higher interest rates have left a telling effect, wherein its interest outgo for FY14 was at Rs.294 crore, up 18% over FY13.