Subsidiaries Drive Motherson Sumi’s Earnings Past Estimates
Motherson Sumi Systems’ profit jumped 28 percent, while revenue rose 12.5 percent.
Shares of Motherson Sumi Systems Ltd. fell despite better-than-expected October to December quarter performance from the automotive component maker.
Consolidated net profit grew 28 percent to Rs 547 crore from Rs 427 crore in the corresponding quarter last year, according to the company’s statement to the exchanges. The other income component spiked to Rs 43 crore from Rs 3.7 crore.
Consolidated revenue grew 12.5 percent to Rs 10,797 crore from Rs 9,598 crore in the same quarter last year, driven by its subsidiaries Samvardhana Motherson Peguform (SMP) and Samvardhana Motherson Reflectec (SMR).
Earnings before interest, taxes, depreciation and amortization (EBITDA) grew 22.9 percent to Rs 1,109 crore whereas its EBITDA margins expanded 90 basis points to 10.3 percent versus 9.4 percent.
Shares fell as much as much as 4.3 percent to Rs 340.4 before recovering to Rs 345.2 as of 1:10 p.m.