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Auto components maker Motherson Sumi Systems has posted 71.78 per cent dip in net profit to Rs 24.26 crore for the second quarter ended September 30, 2011 primarily due to forex losses during the period.
The net profit stood at Rs 85.98 crore in the same quarter last fiscal, Motherson Sumi said in a statement.
During July-September 2011, the company’s net sales were Rs 2,290.10 crore, a 19.51 per cent increase from Rs 1,916.17 crore in the year-ago period.
“This has been the toughest quarter in the recent history... There has also been huge volatility in rupee and euro vis-a-vis the US dollar. The company has made full provision of unrealised exchange translation loss on long-term loans,” Motherson Sumi Systems Vice-Chairman, Mr Vivek Chaand Sehgal, said in a statement.
Exchange loss on US dollar loans in India for the quarter accounted for Rs 41.9 crore (previous year quarter gain of Rs 2.8 crores), the company added.
Besides, Mr Sehgal said that “unfortunate industrial relations situation at one of the company’s largest customer” also resulted in sales loss for the company and unutilised capacities.
The company said that during the quarter, consolidated export sales were up 23.6 per cent to Rs 862.31 crore, while consolidated domestic sales increased 13.4 per cent.
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