Auto components maker Motherson Sumi Systems Ltd on August 11 reported a consolidated net loss of Rs 1,191.65 crore for June quarter 2020 hit hard by the coronavirus pandemic.
The company logged a net profit of Rs 360.64 crore in the same quarter last fiscal, Motherson Sumi Systems Ltd (MSSL) said in a regulatory filing.
Total revenue from operations during the quarter under review stood at Rs 8,503.89 crore. It was at Rs 16,792.53 crore in the year-ago period.
"The group's operations and consolidated financial results for the quarter ended June 30, 2020 have been adversely impacted by the outbreak of COVID-19 pandemic and the consequent lockdown announced by governments in many of the jurisdictions, the group operates, due to which the operations were suspended for a large part of the quarter and resumed only gradually with prescribed regulations and precautions," MSSL said.
The consolidated financial results for June quarter are therefore not comparable with those of previous periods, it added.
The group has been taking several measures to address the operational challenges, including availing of benefits under the various government support schemes announced in the respective countries, it said.
Commenting on the performance during the quarter, MSSL COO Pankaj Mital said in April and May, there were really no production in the company's biggest geographies -- Europe and North American regions.
"There has been an impact there because that's where the largest volume of business is happening," Mital told PTI.
Even in India, there was no commercial activity or very little commercial activity in April and May, he said, adding that plants in some countries such as China, the UAE and Thailand however continued to operate during the quarter.
Mital said the company is gradually ramping up production globally with 84 per cent of the plants running at more than 50 per cent capacity as of July 24 with many countries coming back to normalcy from COVID-19 induced lockdowns.
MSSL Chairman Vivek Chaand Sehgal said: "(The) 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."
He said that the company's topmost concern and focus during this period were the wellbeing and safety of MSSL employees across all the plant locations and that it worked on a war footing to put robust safety protocols in place.
Even though the first quarter was a washout, he said, 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," Sehgal said.
On the outlook, Mital said the situation is getting better.
"Now we see much better demand. In quarter two, a stronger demand is being seen. We see good visibility now as we go forward. It is becoming better and better," he noted.
MSSL said strong demand is sighted for the second quarter and is encouraged by consistent improvement at greenfield plants of group firm SMP, which represents subsidiaries of Samvardhana Motherson Automotive Systems Group B.V, engaged in manufacturing and supplies of plastic parts and system modules for vehicle interiors and exteriors.
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