Motherson Sumi Systems posts Rs 1,192 cr loss for Q1

Auto components maker Motherson Sumi Systems Ltd on Tuesday reported a consolidated net loss of Rs 1,191.65 crore for June quarter 2020 hit hard by the coronavirus pandemic. We now expect demand for the auto industry to gain momentum in the coming quarters of this fiscal year," Chaand said.

Auto components maker Motherson Sumi Systems Ltd on Tuesday 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 the current 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 results, 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." "Our topmost concern and focus during this period were the well-being and safety of our employees across all our plant locations and we worked on a war footing to put robust safety protocols in place," he added. 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," Chaand said.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)