Motherson Sumi Wiring Q2 results: PAT jumps 34%, sales grow 15%

Automobile ancillary major Motherson Sumi Wiring India Ltd (MSWIL) reported a 34 per cent year-on-year jump in its profit after tax (PAT) for the July-September quarter. In Q2FY24, the company’s PAT surged to Rs 156 crore, up 34% from Rs 116.6 crore in the year-ago period.

Its net sales grew 15 per cent over last year to Rs 2,092 crore from Rs 1,824 crore. This is the first time that MSWIL’s quarterly sales surpassed the Rs 2,000 crore-mark, while its earnings before interest, tax, depreciation & amortisation (EBITDA) increased 33 per cent YoY to Rs 253 crore.

According to Vivek Chaand Sehgal, Chairman, MSWIL, it plans to expand its capacity in the coming quarters. “The Company has delivered a commendable performance with the unwavering support of our valued customers and the relentless efforts of our teams across India. The Indian automotive industry continues to grow at a healthy rate. The company's manufacturing expertise remains a crucial driver of its performance, and it is committed to enhancing its operational efficiencies further. Additionally, the company will continue to expand its capacities aligned to its customers' upcoming launches across all powertrains,” he said in a statement.

As per analysts from Motilal Oswal, in recent quarters, MSWIL has focused on leveraging the electrification trend, localisation, and maintaining an ROCE (return of capital employed) of over 40 per cent (close to 42.7 per cent pre-tax in FY23).

“It has consistently taken proactive approach to capacity expansion and R&D initiatives and added three new facilities this year, which are expected to reach optimum utilisation in FY2024. Adhering to its principle, the company initiates its expansion plans once it achieves close to 80% utilisation of its existing capabilities. For new orders, it would start looking at new capacity enhancement almost a 1-1.5 years before the predicted date of supply,” they noted.