The share price of Motherson Sumi Systems fell nearly 10% Tuesday after the company reported a 42% decline in its consolidated net profit at Rs 360.64 crore for the first quarter ended June 30, 2019.
The share price of Motherson Sumi Systems opened 1.2 points lower at Rs 105.60, against the last closing price of Rs 106.80 and later fell as much as 9.83% in intraday to touch a low of Rs 96.30 on BSE. Overall 9.4 lakh shares and 214.7 lakh shares have changed hands on BSE and NSE, respectively.
Motherson Sumi stock has fallen after 2 days of consecutive gain and trades merely 6.45 points away from its 52-week low of Rs 91.20 on BSE.
The company said that its profitability was impacted by adverse ramp-up costs at Samvardhana Motherson Peguform (SMP) greenfield projects and tough market conditions.
Motherson Sumi's revenue from operations rose by 13.65 per cent to Rs 16,792.53 crore in Q1FY20 versus Rs 14,775.46 crore in Q1FY19.
Motherson Sumi's India business revenue declined to Rs 1,786 crore for April-June 2019 as compared with Rs 1,870 crore in the year-ago period. However, revenue from businesses outside India jumped 16.37 per cent to Rs 14,771 crore against Rs 12,693 crore in the year-ago period.
EBITDA (Earnings before interest, tax, depreciation and amortisation) dropped by 10.19 per cent to Rs 1,277 crore from Rs 1,422 crore in the corresponding period last year.
Commenting on Q1 earnings, Vivek Chaand Sehgal, Chairman, MSSL said, "Amidst challenging global market conditions, the Board recognised and appreciated the efforts of the teams who have worked very hard. The greenfield plants of SMP are showing slow continuous improvement and we expect the trend to continue provided there is no further global slowdown."
"We are pleased with the continued robust performance of PKC Group as well as other businesses. We continue to focus on managing cash flows and debt, and in improving operational efficiency. We thank our customers for their continued trust in us," he added.
As of 2: 35 pm, share of Motherson Sumi System were trading at Rs 98.20 on BSE and NSE.