Q2 Results: Motherson Sumi Expects Strong Order Book To Drive Growth In FY20

Motherson Sumi Systems Ltd.’s Rs 1.43 lakh-crore order book will drive growth in next financial year despite the slowdown in the auto sector, according to its Chairman Vivek Chaand Sehgal.

“There is going to be more growth as all these orders are going to be fructified into factories and manufacturing which we are supplying to the customers,” Sehgal told BloombergQuint in an interview. “We have added 3.8 billion euros on our top line from our order book in the last six months.”

The auto components maker is “not concerned” about the increasing net debt level as “they are moving up marginally due to foreign exchange fluctuations”, Sehgal said, adding that the firm may also dilute its equity to ensure it is not overburdened by debt in the long-term.

Shares of the company rose 3.8 percent to Rs 135.50 apiece on Monday compared to a flat Nifty Index.

Motherson Sumi (Q2, YoY)

• Revenue rose 6 percent to Rs 15,709 crore versus Rs 14,854 crore.
• Ebitda rose 5 percent to Rs 1,355 crore versus Rs 1,290 crore.
• Profit rose 4 percent to Rs 385 crore versus Rs 371 crore.
• Margin stood at 8.6 percent versus 8.7 percent.

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