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Motherson Sumi Systems stock closes 7.58% lower on Q2 earnings

Motherson Sumi Systems stock closes 7.58% lower on Q2 earnings

The stock closed 7.58% or 12.60 points lower at 153.60 on the BSE. The stock fell to an intra day low of Rs 151.25, down 9% from the previous close of 166.20. The stock has lost 35.14% during the last one year and fallen 39.18% since the beginning of this year.

The Motherson Sumi Systems stock closed lower in trade today after the firm reported a 16.50 per cent decline in consolidated net profit at Rs 495.48 crore for the quarter ended September 30, 2018 compared to a net profit of Rs 593.45 crore during the same period of the previous fiscal.

The stock closed 7.58% or 12.60 points lower at 153.60 on the BSE. The stock fell to an intra day low of Rs 151.25, down 9% from the previous close of 166.20. The stock has lost 35.14% during the last one year and fallen 39.18% since the beginning of this year.

Currently, the large cap stock stands below the 50-day and 200-day moving average of 164.68 and 194.29, respectively.

26 of 33 brokerages rate the stock "buy" or 'outperform', four  "hold" and one "underperform" and two "sell", according to analysts' recommendations tracked by Reuters.

Total revenue from operations rose to Rs 15,104.97 crore during the period under review compared to Rs 13,420.43 crore in the same quarter last fiscal, the firm said.

MSSL Chairman VC Sehgal said: "The operational integration of Reydel with polymer business of the group has started on a positive note in this quarter. The company has maintained its growth momentum and Reydel's contribution has further enhanced our growth and product offerings".

In August this year, MSSL completed the acquisition of interior components and modules manufacturer Reydel Automotive Group (Reydel) for $201 million (over Rs 1,300 crore)

Overall expenses during the September quarter stood at Rs 14,424.35 crore compared with Rs 12,666.94 crore in the same quarter last fiscal.

Motherson Sumi Systems is a system solutions provider to automotive and other industries, offering services from design and prototyping to production and delivery of solutions across a range of products.

The company's segments are automotive, which includes product categories, such as wiring harness, high tension cords, wire, plastic components, rubber components, cockpit assembly, scuff plates, thermo-formed products, mold for wiring harness components and mold parts, heating, ventilation and air conditioning (HVAC) modules, plastic molded components and brass terminals, and non-automotive, which includes product categories, such as wiring harness, plastic components for white goods, household wires, plates and aerobin.

The company caters to a range of customers in the automotive and other industries across Asia, Europe, the Americas, Australia and Africa.