Motherson Sumi: Gearing for growth
Shares of Motherson Sumi Systems (MSSL) rallied another 7% to hit a fresh 52-week high of Rs 212.00 apiece on Monday as investors cheered the auto ancillary company’s stellar December quarter earnings.
The auto components major reported a nearly four-fold jump in consolidated net profit from continuing and discontinued operations at Rs 1,268.31 crore in the third quarter ended December 31, 2020. The company had posted a consolidated net profit from such operations of Rs 340.32 crore in the same period last fiscal.
Consolidated revenue from operations during the quarter jumped almost 14% to Rs 17,092.44 crore from Rs 15,000.10 crore in the same period last fiscal.
On the operational front, consolidated Ebitda rose 60.7% to Rs 1,795.5 crore from Rs 1,117.1 crore, while EBITDA margin expanded by 310 bps to 10.5% from 7.4%, YoY.
It reported the lowest net debt compared to previous 14 quarters.
MSSL board approved a group reorganisation plan that entails demerger of domestic wiring harness (DWH) business from MSSL into a new company Motherson Sumi Wiring India (MSWIL) and subsequent merger of SAMIL into MSSL to consolidate 100% shareholding in Samvardhana Motherson Automotive Systems Group BV (SMRP BV) as well as to bring all auto component and allied businesses in Samvardhana Motherson International (SAMIL) under MSSL.
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