Mother­son Sumi Posts Record Profit in Q3, Up­beat on Growth

The Economic Times - - Smart - Mar­ket In­tel­li­gence

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

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