Motherson Sumi falls after reports of raid on Renault's plants

Motherson Sumi Systems shed 4.6% to Rs 249.95 at 13:00 IST on BSE after reports suggested that multiple sites of French car maker Renault, which is a client of the company were raided by the French anti-fraud units.

Meanwhile, the BSE Sensex was down 93.49 points, or 0.33%, to 24,690.22.

On BSE, so far 3.22 lakh shares were traded in the counter, compared with an average volume of 3.04 lakh shares in the past one quarter. The stock hit a high of Rs 259.90 and a low of Rs 248 so far during the day. The stock hit a record high of Rs 395.85 on 6 August 2015. The stock hit a 52-week low of Rs 217.30 on 5 October 2015. The stock had underperformed the market over the past one month till 14 January 2016, dropping 4.87% compared with Sensex's 1.5% fall. The scrip had, however, outperformed the market in past one quarter, gaining 6.98% as against Sensex's 7.49% fall.

The large-cap company has an equity capital of Rs 132.29 crore. Face value per share is Re 1.

The report said that raids on sites of French car maker Renault were prompted by Volkswagen emission scandal, which surfaced last year. According to report, Renault Nissan accounted for 5% of the sales of Motherson Sumi Systems.

Meanwhile, Renault Group had issued a statement yesterday, 14 January 2016 saying the raids were linked to random tests of 100 cars to see if they are equipped with emission-cheating software. Renault said that the French Agency for Energy and Climate (DGEC) already considers that the on-going procedure would not reveal the presence of a defeat device on Renault's vehicles.

At the same time, the DGCCRF decided to carry out additional on-site and material investigations, in order to definitively confirm the first findings resulting from the analysis of the independent technical commission. The DGCCRF went to the Headquaters, the Renault Technical Centre in Lardy and the Technocentre in Guyancourt, Renault added.

On a consolidated basis, Motherson Sumi Systems' net profit jumped 174.7% to Rs 286.89 crore on 14.1% growth in net sales to Rs 9037.32 crore in Q2 September 2015 over Q2 September 2014.

Motherson Sumi Systems (MSSL) is one of the world's fastest growing specialised automotive component manufacturing company for OEMs. MSSL is the flagship company of the Samvardhana Motherson Group, established in 1986. It is a joint venture between Samvardhana Motherson Group and Sumitomo Wiring Systems (Japan).

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