Mumbai,Maharashtra–February2023–MothersonSumiWiringIndiaLimited(MSWIL)todayannounceditsfinancialresults forthefiscal 2022-23thirdquarter, whichendedon 31stDecember2022.
Commentingontheresults,Mr.VivekChaandSehgal,Chairman,MothersonSumiWiringIndiaLtd.said,
“Indian automotive industry continues to face supply chain issues. Our teams are working closely with the customers to mitigate the effects of these challenges. We believe this quarter is a work in progress given products for 11 new models are already developed by the company, with required capacities in place (including three new plants). We are optimistic that in upcoming months with the stable/growing business environment, added capacities will have higher utilisation. We are thankful to our customers for their continued support.
KeyHighlights
• FY 22-23 is the first reporting financial year for MSWIL as an independent publicly listed company (GroupreorganisationimplementedinJan–March2022quarterwithapprovalofHon’bleNCLT, Mumbai)
• During FY 22-23, MSWIL expanded capacity (capex for Q3FY23 is Rs 61 crores; 9M FY23 is Rs 147 crores)in line with customers’ forecasted requirements as well as orders for new models/ programs awarded to the company.
• Added 3 new facilities (26 now, compared to 23 earlier) and enhanced overall capacities by over 25% intermsofmanhourscomparedtosameperiodpreviousfinancialyear
• The company developed products for 11 new /full model changes and 04 facelift models in the passengervehiclesegmentduringfirstninemonthsandiscurrentlyworkingon06new/full model changes which will be launched in the next 3-6 months. These will contribute nearly 40% of the total business of the company, requiring the company to hire and train additional manpower (approx. 7000 people) upfront for the successful full launch of these programs.
Performanceforthequarterincludesimpactof
• Higher operating costs due to lower production at OEMs on a QoQ basis, leading to lower utilisation of added capacities
• Stablisation/rampupphaseofnewmodelsisinprogress
• InflationarypressuresspeciallymanpowerinflationandstrengtheningofJapaneseYen
Teams performed well despite challenges like lower topline / higher costs and have improved sequential EBITDA.Actionstomitigatechallengesareinplace:
• Smooth ramp-up at Bengaluru and Chennai facilities are in progress, expected to have optimum utilisation byQ1FY24onthebackofstabledemandfromOEMs
• Ongoingdiscussionswithcustomersmovinginpositivedirectionforactualisation/realignmentofcost
