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Auto component major Motherson Sumi Systems (MSSL) has reported a whopping 97.26 per cent drop in net profit for the second quarter of the current fiscal on account of exchange loss on translation of foreign currency loan.
“The drop in profit is mainly on account of our exchange loss, which stands at Rs 61.38 crore. This is because of the appreciation of the dollar vis-a-vis the rupee as a huge chunk of our long-term loans was in dollars,” Mr G.N. Gauba, CFO, MSSL, told Business Line .
The net profit during the quarter stood at Rs 2.41 crore against Rs 88.02 crore in the same period last fiscal.
During July-September 2011, the component maker's net sales stood at Rs 2,290.10 crore against Rs 1,916.17 crore in the second quarter of 2010-11, up 19.5 per cent.
“Despite the negative growth in the passenger car segment and industrial relations problem at Maruti Suzuki, our largest customer, our consolidated net sales have gone up by 19.5 per cent,” said Mr Vivek Chaand Sehgal, Vice-Chairman, MSSL.
At the same time, exports from India posted a healthy growth of 59.3 per cent at Rs 100.63 crore and sales to customers from outside India on consolidated basis grew by 23.6 per cent to Rs 1,428 crore.
MSSL's shares closed at Rs 187.05 a share on the BSE on Friday, down 3.06 per cent from the previous close.
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