Motherson Sumi Systems said the fiscal second quarter ended 30 September 2011 was the toughest quarter in recent history.
Net earnings dipped 71.8% year on year to INR243m compared with INR860m in Q2 2010.
The company posted consolidated total sales up 19.5% to INR22.9bn (US$447m). Domestic sales rose 13.4% to INR8.62bn while export sales grew 23.6% to INR14.3bn in Q2 2011.
Vice-chairman Vivek Chaand Sehgal said: “This is despite the negative growth in the passenger car segment, unfortunate industrial relations at one of the company’s largest customers [Maruti Suzuki – ed] – this has resulted in sales loss for our company and unutilised capacities.”
MSSL’s stand-alone total sales for the second quarter grew 18.6% to INR7.74bn. Domestic sales rose 14.2% to INR6.73bn and export sales totalled INR1bn, an increase of 59.3%.
Standalone net income fell 52.1% to INR316m from INR659m in Q2 2010.
MSSL and Samvardhana Motherson Reflectec (SMR) completed major exapnsions in the quarter. The second plant at SMR Hungary was inaugurated and sales commenced during the quarter. The Brazil plant is ready; the unutilised expanded impacted profitability at SMR.