Motherson Sumi Posts Record Profit in Q3, Upbeat on Growth
New Delhi: Autocomponentsmaker Motherson Sumi Systems (MSSL) reported a record net profit for the third quarter at ₹ 416 crore on Monday and said it was upbeat about growth in the coming quarters.
The company posted an increase of 34% in net profit in the December quarter versus ₹ 311 crore in the corresponding period last fiscal. “The company has shown exemplary growth in all areas and has achieved highest ever revenues and margins in a quarter,” said Vivek Chaand Sehgal, MSSL’s Chairman.
Chief financial officer GN Gauba said growth is on track, especially in India and United States. “The trends both in the domestic market as well as abroad are positive,” Gauba said.
While revenues from outside India increased by 12% to ₹ 9,061 crore in the quarter under review, domestic revenues rose 24% to ₹ 1,453 crore. MSSL’s revenues surged 13% to ₹ 10,514 crore, last quarter. Total expenses in the quarter went up by ₹ 115 crore to ₹ 9,960.9 crore. “Net improvement in bottomline during the quarter was better than the increase in topline. This was enabled through a lot of efforts made towards cost improvements,” Gauba said.
Thecompanyiscurrentlyintheprocess of setting up nine plants, three each in India and Hungary and one eachinUSA,MexicoandSouthKorea to expand its footprint. In the current fiscal, the company will invest ₹ 2,000 crore in capex towards this.
Last month, MSSL made a $609-millionoffertobuyFinland’sPKCGroup, a maker of wiring harnesses for trucks. The company expects to see positive effects of the acquisition from Q1 of the next fiscal.
Shares of Motherson Sumi closed at ₹ 351.05, down 1.25% on the BSE. HIGHS & LOWS