Motherson Sumi

In November 2011, on 23rd Nov to be more precise, the company had taken over Peguform Group, which is today renamed as Samvardhana Motherson Peguform (SMP) is now a part of the consolidated performance of Motherson and that acquisition seems to have helped boost the numbers substantially. Its consolidated sales (YoY) rose 153% at Rs.1580 crore. Exports rose by 235% while domestic was up just 18%. Clearly, but for the exports, the numbers would have slumped. EBIDTA margins improved 160 bps from 9.9% to 8.3%. Net profit was up by 467% at Rs.138 crore.

The performance is excellent to say the least but two points – it also incurred a forex loss at Rs.84 crore and interest outgo is huge at Rs.63 crore, an almost 3 fold rise on a YoY though, sequentially, it has come down from Rs.66 crore. That can be attributed to the fact that its net debt is down from Rs.4436 crore in current Q1 to Rs.4275 crore in Q2. Cash at hand stands at Rs.608 crore. Its overseas subsidiary Samvardhana Motherson Reflectec (SMR) also turned around, with a 25% jump in revenue. On the other hand, SMP showed a drop in revenue but it also turned around in current quarter.