Q1 Results: Motherson Sumi Not Looking At Layoffs In India, Says Chairman
Motherson Sumi is shutting some plants in India due to lower demand and order flows from carmakers, says Vivek Chaand Sehgal.
Motherson Sumi Systems Ltd. isn’t looking at layoffs in its workforce in India as it is preparing for a revival in the domestic automobile sector, said Vivek Chaand Sehgal, chairman at the auto parts maker, on Tuesday.
“We aren’t trying to take out people... We've a long-term relationship with our people,” Sehgal told BloombergQuint in a conversation, adding that Motherson Sumi is shutting some plants in India on account of lower demand and order flows from carmakers.
“We’re absolutely breathing with the market,” he said.
Sehgal said the company is currently working on realigning its production and maintaining plants. “Whenever the automotive industry comes back, it comes back very very quickly and what’s important is to be ready for that,” he said. “History has taught us we can’t be on the pendulum.”
Key Takeaways From The Interview
- Will focus on return on capital employed.
- Would look at acquisitions, if it makes sense for customers and the company.
- Looking to cut debt from here on given there are no new capex requirements.
Motherson Sumi Q1 Results 2019-20: Key Highlights (YoY)
- Revenue rose 14 percent to Rs 16,557 crore.
- Adjusted Ebitda fell 16.5 percent to Rs 1,188 crore.
- Profit slumped 25 percent Rs 332 crore.
- Margin contracted 260 basis points to 7.2 percent.
- Net debt stands at Rs 8,375 crore, versus Rs 8,277 crore.
Watch the full interview here: