Motherson Sumi Wiring India reported a higher-than-expected third-quarter profit on Wednesday, buoyed by strong demand for its wiring harness solutions from the automotive industry.
The Noida-based company said its profit rose more than 58% to 1.68 billion rupees (about $20 million) in the three months ended Dec. 31, beating analysts' estimates of 1.47 billion rupees, per LSEG data.
The demand for wiring harnesses, used in making vehicles, surged in the December quarter as vehicle sales jumped during the 42-day festive season.
Motherson Sumi, which counts Maruti Suzuki, Tata Motors and Ashok Leyland among its clients, said its total revenue from operations jumped 25.5% to 21.17 billion rupees.
The growth in revenue outpaced a 22.8% rise in total expenses, led by a spike in the cost of key raw material – copper.
The company is a joint venture between India's Samvardhana Motherson International and Japan's Sumitomo Wiring Systems.
Shares of Motherson Sumi rose as much as 3.5% after the results.
($1 = 83.0325 Indian rupees)
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