Motherson Sumi Q1 profit, revenue up over 15%; debt jumps 29%

A CNBC-TV18 poll estimated profit at Rs 350 crore on revenue of Rs 10,770 crore and operating profit at Rs 1,070 crore with margin at 10 percent for the quarter.

The company said profit of Samvardhana Motherson Automotive Systems Group BV (SMRPBV), a Samvardhana Motherson Group Company, increased 33.33 percent year-on-year to 16 million euro and revenue grew by 11 percent to 1,109 million euro. Operating profit margin expanded by 40 basis points to 7.1 percent.

SMRPBV is a joint venture between Motherson Sumi Systems and Samvardhana Motherson International, the principal holding company of Samvardhana Motherson Group through their subsidiaries.

Samvardhana Motherson Peguform's (SMP) revenue for the quarter increased 13 percent year-on-year to 736 million euro and operating profit jumped 28 percent with margin expansion of 80 basis points while Samvardhana Motherson Reflectec's (SMR) total income rose 7 percent to 374 million euro and operating profit grew by 13 percent with margin rising 60 basis points. Both are subsidiaries of SMRPBV.

Motherson Sumi said net debt increased by 7.7 percent (up 29 percent year-on-year) to Rs 4,632 crore at the end of June 2016 from Rs 4,301 crore in March quarter as SMRP BV raised 5.5 years bonds of USD 300 million at 4.875% per annum in June.

At 11:01 hours IST, the scrip of Motherson Sumi Systems was quoting at Rs 338.00, down Rs 14.60, or 4.14 percent on profit booking.The stock, which has run-up a bit, looks good year-on-year, says Prakash Diwan of prakashdiwan.in. He feels the company's USD 18 billion target for 2020 looks too inspirational now especially post Volkswahgen scandal coming to light. He expects the stocks to consolidate at lower levels as investors will wait for commentary by the management.