Motherson Sumi's FY19 earnings cut on margin pressure; stock falls

The Motherson Sumi stock has shed about 12 per cent since the start of the month on weak September quarter results, and worries that muted volume outlook could hamper its future performance. Following the September-quarter results, analysts have cut the company's 2018-19 (FY19) earnings estimates by up to 20 per cent — the highest for any large auto company, with the exception of Tata Motors. 

The immediate trigger for the earnings downgrades were the weak results in the quarter on the back of margin pressures. For example, new expansion at SMP (German subsidiary) has resulted in start-up cost of