Motherson Sumi reported weak Q3 earnings. Detailing the numbers, Vivek Chaand Sehgal, Chairman of Motherson Sumi said that the confusion related to BS-VI will continue till March.
“People are confused about Euro-IV, Euro-VI and which car I can buy and which I cannot buy. So, those particular things being as they are, hopefully in the first quarter you will start to see a pullback and people will be a bit more relieved," said Sehgal.
Speaking about the SMP business, he said, “I think SMP if you take out the Greenfield, has actually become better. The turnover in SMP is also higher. By and large we are seeing a very good pullback from the situation that was there in the last quarter and this quarter.”
“If you look at the SMP results, in euro terms, SMP in Q3, 2019-2020 is almost at the same level as that of the last quarter. If you look without the Greenfield, the EBITDA is up to 85 million and excluding Greenfield our margin has gone up 9.9 percent; in March last year, it was 9.1 percent. The kind of number that is there in front of me is showing that the revenues are almost flattish, but the EBITDA margin without the Greenfield has gone up,” he added.
On the guidance of USD 18 billion of revenue by March 2020, Sehgal said, “We still standby the March 31 number of USD 18 billion. We are sitting at about USD 12.5-13 billion at the moment."