Auto ancillary company Motherson Sumi Systems' third quarter consolidated profit is likely to jump 40 percent year-on-year to Rs 355 crore and revenue may increase 12 percent to Rs 10,240 crore, according to analysts polled by CNBC-TV18.
Strong demand growth in Europe, sudden bump up in demand in China and consumption tax cuts in Korea may result in volume growth. In EUR terms, analysts expect European subsidiary SMR (75 percent of revenue) revenue may increase by around 20 percent on yearly basis.
Operating profit (earnings before interest, tax, depreciation and amortisation) in Q3 is seen rising 22 percent to Rs 1,010 crore and margin may expand 9 basis points to 10 percent compared to corresponding quarter of last fiscal.
Margin growth may be led by increasing contribution of premium car parts to SMR from 48 percent in FY15 to 60 percent in FY18. Other European subsidiary SMP may benefit from 17 percent rise in China car sales in Q3FY16.
Standalone revenue is likely improve by 7 percent YoY due to subdued industry demand and EBITDA margin may improve 260 basis points to 19.8 percent in Q3.
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