Auto components major Motherson Sumi Systems Ltd (MSSL) on Friday reported a 76 per cent decline in consolidated net profit from continuing operations at Rs 93.04 crore in the second quarter ended September, hit by global automotive supply chain disruptions.
The company had posted a consolidated net profit from continuing operations at Rs 387.93 crore in the same quarter last fiscal, MSSL said in a regulatory filing.
Consolidated total revenue from operations stood at Rs 14,076.39 crore as against Rs 14,957.21 crore in the year-ago quarter, it added.
Total expenses were at Rs 14,001.29 crore in the second quarter as against Rs 14,426.92 crore in the corresponding period last fiscal, the company said.
Commenting on the performance, MSSL Chairman Vivek Chaand Sehgal said,''The global automotive industry continues to face multiple challenges on account of supply chain disruptions...Our teams are working very hard to support the customers and deliver value to our stakeholders.''
He further said the company is focused on ''controlling our cost structure and conserve cash in the current volatile market conditions.'' On the outlook, he said,''We expect the industry headwinds to ease gradually in the upcoming quarters.'' The company said while the global demand for passenger vehicles remains strong, the supply side challenges are likely to continue in Q3 as well.
Also, the raw material prices remain elevated, although contractual lag in pricing is expected to narrow, it added.
(With inputs from PTI)
