Motherson Sumi Systems dips over 10% post Q3 numbers

The stock was down 11% at Rs 242 on the BSE on back of heavy volumes at 03:22 PM.

Motherson Sumi Systems dipped 13% to Rs 236 on the BSE after the auto component maker reported lower-than-expected 20% year on year (y-o-y) growth in consolidated net profit at Rs 307 crore for the quarter ended December 31, 2015 (Q3FY16). Net sales grew 8% at Rs 9,676 crore on y-o-y basis.

Analysts on an average had expected profit of Rs 323 crore on revenues of Rs 9,892 crore for the quarter.

The company recorded an impairment loss of Rs 29 crore for the quarter.

Motherson Sumi Systems said, the results, in which profit growth is even stronger than revenue growth, reflect the solid operational improvements the company is making.

The performance is all the more encouraging in the light of the worries that surround the global automotive industry in the third quarter, it added.

The company also announced an update on 17 plants commissioned around the world, across its major product verticals, out of which seven have already been completed.

At 03:22 PM, the stock was down 11% at Rs 242 on the BSE on back of heavy volumes. A combined 18.08 million shares changed hands on the BSE and NSE so far.