Actionable insights on equities, fixed-income, macros and personal finance Start 14-Days Free Trial
Actionable investing insights Get Free Trial

Motherson Sumi Reports 30% Increase in Net Profits On Improved Margins and Debt Reduction


The automotive mirrors and module giant has been expanding its global footprint and its customer base. Motherson Sumi supplies door panels, instrument panels and bumpers along with mirrors to the automotive companies. Motherson Sumi has OEMs with 14 companies out of top 15 global automotive companies.
Motherson Sumi has started commercial production of bumpers, spoilers, panels and wheel cover from its Mexico plant. The commercial door panel manufacturing plant in China has also started operating in the current year. Two plants are under construction at Hungary and Alabama.
Motherson Sumi reported a revenue growth of 14.31% along with a profit growth of 30.37% YoY for Q2FY17. Operating Margin improved from 6.87% in Q2FY16 to 7.18% for Q2 current year.
 82.5% of the revenue came from international operations, the rest from domestic sources.
71% of the revenue is generated from European countries, of which 38% is contributed by Germany alone.  Revenue share from Asia pacific and America has seen an increasing trend for the current quarter.  The major automotive companies which generate revenue for Motherson Sumi are Audi (26%), Daimler (13%) and Volkswagen (10%).
The company added new orders to the tune 12,000 Crs for the current half year ending September 30 2016. The current order book stands at Rs 89,000 Crs
Finance costs of the company has come down by 8.27% YoY on account of debt reduction by almost 50% from the start of the current financial year (if cash in bank is considered). Even with that Motherson Sumi has a higher leverage, its current debt to equity ratio is at 86.7%. It currently has 7,328 Crs as outstanding long term borrowings.
In Q2 current year Motherson Sumi has raised 2,517 Crs by issuing 8.05 Cr new shares for Sumitomo Wiring Systems Japan and QIP.


Like our content? Join Capitalmind Premium.

  • Equity, fixed income, macro and personal finance research
  • Model equity and fixed-income portfolios
  • Exclusive apps, tutorials, and member community
Subscribe Now Or start with a free-trial