Motherson Sumi recovers after clarification

Motherson Sumi Systems rose 1.55% to Rs 245.65 at 14:30 IST on BSE after clarification that as per its assessment there is no material impact on operational performance regarding regulatory problems being faced by its key client, Volkswagen.

The company made clarification during market hours today, 23 September 2015.

Shares of Motherson Sumi had dropped 14.77% in two sessions, to settle at Rs 241.90 on 22 September 2015 from a recent high of Rs 283.85 on 18 September 2015, amid investor concerns that regulatory problems being faced by its key client, Volkswagen may weigh on its business prospects.

Meanwhile, the S&P BSE Sensex was up 231.70 points or 0.9% at 25,874.58.

On BSE, so far 17.71 lakh shares were traded in the counter as against average daily volume of 3.68 lakh shares in the past one quarter.

The stock was volatile. At the day's high of Rs 245.80, the stock rose 1.61%. At the day's low of Rs 228.50, the stock fell 5.53%. The stock's day's low of Rs 228.50, was also a 52-week low for the stock. The stock had hit a record high of Rs 395.85 on 6 August 2015.

The stock had underperformed the market over the past one month till 22 September 2015, falling 24.64% compared with Sensex's 6.26% fall. The stock had also underperformed the market in past one quarter, dropping 27.2% as against Sensex's 7.49% fall.

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

Volkswagen cars are at the centre of a US probe into rigged emissions tests of diesel-powered vehicles. The US Environmental Protection Agency (EPA) said on Friday, 18 September 2015, that the Volkswagen AG used software that deceived regulators measuring toxic emissions and could face penalties of up to $18 billion.

Motherson Sumi Systems' consolidated net profit rose 62.3% to Rs 265.76 crore on 12.1% rise in total income to Rs 9409.51 crore in Q1 June 2015 over Q1 June 2014.

Samvardhana Motherson Group (SMG) founded in 1975, has a diversified industry-leading portfolio of auto ancillary products and services that make it a full system solutions provider for its customers across the globe. With market leading products ranging from Electrical Distribution Systems, automotive rearview mirrors, polymer processing, lighting systems, air intake manifolds and HVAC systems. SMG's principal focus is the automotive industry, globally and in India.

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