Motherson Sumi records highest ever nos in Q3, net up 142%

Moneycontrol Bureau

Auto component maker Motherson Sumi Systems, the flagship company of the Samvardhana Motherson Group, recorded best ever performance on every parameter in the third quarter of FY14.

"The company has delivered its best ever results in revenues as well as operating margins for a quarter. This is exceptional performance both in domestic and overseas businesses in current market conditions," VC Sehgal, Chairman.

Consolidated net profit jumped 2.4 times to Rs 249.6 crore, aided by forex gain and strong operational performance. Total income from operations grew 20 percent to Rs 7,988.7 crore compared to a year ago period.

Earnings before interest, tax, depreciation and amortisation or operating profit surged 78 percent year-on-year to Rs 793 crore and operating profit margin expanded 320 basis points to 9.9 percent in the quarter ended December 2013.

It has foreign exchange gain of Rs 32.3 crore during December quarter as against loss of Rs 65.8 crore in same quarter last year.

Both subsidiaries Samvardhana Motherson Reflectec (SMR) and German-based Peguform delivered operational improvement in the quarter gone by. Former reported record operating performance while latter turned into the black at the profit before tax level.

SMR (erstwhile Visiocorp), which in the rear view mirror business, reported 83 percent growth year-on-year in profit before tax at Rs 243.5 crore and 30 percent jump in revenues at Rs 2,398 crore during October-December quarter.

Peguform, the plastic processor acquired in 2011, grew its revenues by 23 percent to Rs 4,091.4 crore compared to a year ago period. Profit before tax of this German subsidiary stood at Rs 119 crore as against loss of Rs 38.2 crore year-on-year and loss of Rs 11.3 crore quarter-on-quarter.

Motherson Sumi Systems showed margin improvement despite slowdown in its standalone business (domestic). Profit after tax increased 6 percent to Rs 123 crore on revenues of Rs 1,106 crore (4 percent growth year-on-year) during December quarter as against same quarter last year.

Standalone operating profit jumped to Rs 227 crore from Rs 192.9 crore and margin expanded 240 basis points to 20.5 percent during the same period.

At 14:12 hours IST, the stock surged 9.34 percent to Rs 197.20 amid large volumes on the BSE.