Mumbai – 10th Nov 2020 – Motherson Sumi Systems Limited (MSSL) today announced financial results for its fiscal 2020-21 second quarter, which ended on 30th September 2020.
• Improvements in global operations in post COVID world.
• Approx. 80% of our facilities are running at over 75% capacity, indicating that things have come back to near normal
• Improved performance of Greenfield plants, marginal EBITDA positive for first time due to intensified operational improvement activities
• All activities are as per original time plan
• Incorporated Motherson Sumi Wiring India Limited as a wholly owned subsidiary of the Company for Domestic Wiring Harness Division
• BSE and NSE has referred the Scheme to SEBI
• Next Steps: Scheme to be submitted to NCLT post approval from the Stock Exchanges
• Booked expenses related to reorganisation as exceptional expenses of Rs 19.85 crores in the quarter
Funds raised of over Rs. 3,000 crores at substantially lower cost versus the current borrowing costs
· 6.65% NCD issuance which was upsized from Rs 1,500 crores to Rs. 2,130 crores using green-shoe option due to overwhelming demand
· 5 years term loan of Rs 1,000 crores (drawn Rs 850 crores) at very competitive pricing for enhancing liquidity
Average Tenor of debt maturity extended; No near-term maturities (in next 2 years)
· Repayment of US $ 375 million out of US $ 400 millions, due in December 21 using the proceeds from NCDs and cash of SMRPBV (exceptional cost of Euro 5 million booked during the quarter)
· Post Q2, out of the remaining US$25 Mn, US$17.6 Mn purchased on November 02, 2020; to be held as treasury notes
With improved operating performance and debt repayments, Net debt reduced from Rs. 9,083 crores to Rs 7,512 crore between June 30th, 2020 to September 30th, 2020. Further liquidity also enhanced from Rs 10,037 crore to Rs 11,629 crore between June 30th, 2020 to September 30th, 2020
With the above measures, MSSL has not only strengthened its balance sheet but also substantially reduced its financing cost – Well capitalized for any future uncertainties
Commenting on results, Mr Vivek Chaand Sehgal, Chairman, Motherson Sumi Systems Ltd said,
“Global automotive industry is on a path to recovery in post COVID world. We are seeing surge in demand across the globe. Our teams are geared up to fulfil the demands of our customers. We believe that in the upcoming quarters, strong traction will continue to be there. Operational improvements done by our teams across the globe have resulted in improved performance of our plants. Above all, the health of our employees remains our top priority.”
About Motherson Sumi Systems Limited
Motherson Sumi Systems Limited (MSSL) is one of the world’s leading specialised automotive component manufacturing companies for OEMs. MSSL was established in 1986 as a joint venture with Sumitomo Wiring Systems and was listed in 1993 on BSE and NSE in India. MSSL is a focused, dynamic and progressive company providing customers with innovative and value-added products, services and solutions. With a diverse global customer base of nearly all leading automobile manufacturers globally, the company has a presence in 41 countries across five continents. MSSL is currently the largest auto ancillary in India and among the Fab 50 companies of India by Forbes magazine. MSSL is the flagship company of the Motherson Group, ranked 22nd among global automotive suppliers by Automotive News.