Motherson Sumi surges 11%, hits 52-week high on strong performance in Q4

Shares of Motherson Sumi Systems (MSSL) moved higher by 11 per cent, hitting a fresh 52-week high of Rs 264.40, on the BSE in Wednesday's intra-day deals after the country's largest auto ancillary company posted a robust performance for the quarter ended March 2021 (Q4FY21).

The company's consolidated profit after tax (PAT) increased 290 per cent to Rs 714 crore in Q4FY21 on the back of a strong operational performance. It had reported PAT of Rs 183 crore in Q4FY20. Consolidated revenue, meanwhile, grew 19 per cent year on year (YoY) to Rs 17,844 crore from Rs 15,001 crore in a year ago quarter and EBITDA (earnings before interest, taxes, depreciation, and amortization) margin expanded by 190 basis points (bps) to 11.2 per cent from 9.3 per cent in a previous year quarter.

MSSL said the consolidated revenues in Q4FY21 were more than pre-Covid levels as industrial activity has picked up globally. "Despite multiple headwinds such as chip shortage, higher commodity costs etc. the company sustained profitability. The production shutdowns (India) and semi-conductor shortages globally likely to be headwinds for OEM production in the near term," the company said.

ICICI Securities had expected Motherson Sumi (MSSL) to report a stable performance in Q4FY21, with consolidated operating income pegged at Rs 17,650 crore (up 16 per cent YoY). EBITDA margins were seen at 9.8 per cent, down 100 bps QoQ. Further, ensuing PAT for Q4FY21 was expected at Rs 459 crore (up 150 per cent YoY).

MSSL is one of the world’s leading specialised automotive component manufacturing companies for original equipment manufacturers (OEMs). With a diverse global customer base of nearly all leading automobile manufacturers globally, the company has a presence in 41 countries across five continents. MSSL is currently the largest auto ancillary in India and among the Fab 50 companies of India by Forbes magazine.

At 02:04 pm, MSSL was up 10 per cent at Rs 262 on the BSE, as against a 0.74 per cent decline in the S&P BSE Sensex. Trading volumes on the counter were over five-times the average with a combined 67.6 million equity shares having changed hands on the NSE and BSE till the time of writing of this report.