Motherson Sumi Systems' third quarter profit increased 1.8 percent year-on-year to Rs 254 crore on consolidated basis, impacted by higher expenses. Vivek Chaand Sehgal, chairman, Motherson Sumi says the company is seeing very good traction in its subsidiaries- Samvardhana Motherson Reflectec (SMR) and Samvardhana Motherson Peguform (SMP).
In a statement the company said the Samvardhana Motherson Reflectec (SMR) revenue grew 13 percent in euro terms and Samvardhana Motherson Peguform (SMP) revenue rose 19 percent on yearly basis.
Furthermore, Sehgal adds that the company’s business is doing well.
“We are seeing good orders come in. Our overall order book stands at over euro eight billion. We also expect margins to improve over the quarters,” he adds.Below is the verbatim transcript of Vivek Chand Sehgal's interview with CNBC-TV18's Varinder Bansal.
Q: Good set of numbers reported by the company. Both the European subsidiaries especially SMR and SMP they have reported good set of numbers. Can you break up the performance of both the subsidiaries for us?
A: The whole of last year we have been saying that we are seeing very good traction in SMR in America and Europe and we are seeing excellent traction in SMP in Europe. So, that is the reason that the last quarter SMR grew by 13 percent and SMP by 19 percent. We thank our customers, they are doing a phenomenal job and giving us a lot of opportunities.
Q: What is the kind of order book position in the European markets? Are you seeing some attraction building up for the next1 or 2 years?
A: We have already guided in the last to last quarter that we have orders worth almost about 1.3 billion euros. Overall order book is plus 8 billion euros. So, no need to worry in the short term. New orders are coming, new cars are coming. We will guide you every six months or 9 months, we will keep guiding you as to what the new order situation in all these companies are.
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