Motherson Sumi surges as Q4 profit beats estimate

The stock moved higher by 8% to Rs 290, bouncing back 11% from intra-day low of Rs 262 on the BSE.

Motherson Sumi Systems (MSSL) has moved higher by 8% to Rs 290, bouncing back 11% from intra-day low on the BSE after the company reported better than expected 22% year on year (YoY) jump in its consolidated net profit at Rs 414 crore for the fourth quarter ended March 31, 2016 (Q4FY16).

Revenues grew 8% at Rs 10,068 crore on YoY basis. It is the first time in the company history that it achieved revenues of more than Rs 10,000 crore in a quarter.

Analysts on an average had expected profit of Rs 379 crore on revenues of Rs 10,728 crore.

Ebitda (earnings before interest, taxes, depreciation and amortization) margins improved 50 basis points to 10.5% in Q4FY16 from 10% in Q4FY15.

The company said net profit was up on account of overall performance by all business divisions, while revenues up due to healthy growth in Indian & global businesses.

EBITDA was up by 14% at Rs 1,061 crore backed by strong continued improvement in Samvardhana Motherson Reflectec (SMR), it added.

“It has been a good year to further enhance our performance. We are seeing huge capacity expansion at Samvardhana Motherson Peguform (SMP) at the request of customers. Operational improvements have been put in place and we have an exciting innovation pipeline, across MSSL companies”, said Vivek Chaand Sehgal, MSSL’s Chairman.

At 12:05 am, the stock was up 7% at Rs 287 on the BSE on back an over 10-fold jump in trading volumes. A combined 11.27 million shares changed hands on the counter on the BSE and NSE so far. The stock hit a low of Rs 262 before announcement of Q4 results.