Motherson's Q4 net up 22%, stock jumps 8%

Net sales touch a record Rs 10,068 cr, up 8% from year-ago quarter

Stock price of Motherson Sumi jumped more than 8 per cent after the Delhi-based auto component maker reported a 22 per cent jump in consolidated net profit for the quarter ended March 31, 2016. The company's profit rose to Rs 414 crore while net sales touched a record Rs 10,068 crore, up 8 per cent from corresponding quarter of previous year. The company's stock price jumped 8.36 per cent to close at Rs 290.45 on Tuesday.

"It has been a good year to further enhance our performance. Operational improvements have been put in place and we have an exciting innovation pipeline, across MSSL companies", said Vivek Chaand Sehgal, chairman.

Consolidated net profit or the year ended March 31 rose 48 per cent to Rs 1,274 crore. Net sales during the year were at Rs 38,033 crore as compared with Rs 34,490 crore in the previous year. One of the factors behind the improved profitability is the decline in finance cost by 15 per cent to Rs 270 crore. Another factor for the sharp surge in annual profit is the 68 per cent decline in inventory adjustment. Compared to an inventory loss (due to changes in valuation of finished goods and stocks) of Rs 773 crore in FY15, the company had a loss of Rs 246 crore in FY16.