Motherson Sumi Wiring India Q2 net profit rises 2% to Rs 116 crore

Auto component maker Motherson Sumi Wiring India Ltd on Monday reported a 2 per cent rise in net profit at Rs 116.45 crore in the second quarter ended September 30, 2022.

The company had posted a net profit of Rs 114 crore in the same period last fiscal, Motherson Sumi Wiring India Ltd (MSWIL) said in a regulatory filing.

Total revenue from operations stood at Rs 1,835.21 crore as against Rs 1,399.95 crore in the year-ago period, it added.

Total expenses were higher at Rs 1,689.77 crore as compared to Rs 1,229.76 crore in the same quarter a year ago.

"The Indian automotive industry is showing signs of revival and our customers are also ramping up production. This has resulted in one-time costs, which should be mitigated in the coming quarters," MSWIL chairman Vivek Chaand Sehgal said.

In the second quarter, the company said it had incurred costs due to initial one-time startup costs of new programmes at Bengaluru and new facility at Chennai.

Besides, to meet increased volume, additional costs on expedited freight and extra ordinary manpower costs have been incurred, which further aggravated by supply chain constraints.

The company said it is in "ongoing discussions with customers for one-time compensation as well as alignment to new cost structure to mitigate current and future impact".