UBS believes this underscores management's strong due diligence and its strong operational improvement and integration capabilities. It also believes that the global auto component space still offers opportunities for disciplined companies like Motherson Sumi to create further value through mergers & acquisitions.
Motherson Sumi said net debt increased by 7.7 percent 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.
The company is planning to raise upto Rs 3562.5 crore through various instruments. It said that fund raising is to enhance long term resources to support growth potential and to have option to raise capital at an appropriate time.
HCL Technologies posted good Q1 (FY17) numbers. SP Tulsian of sptulsian.com said that although positive bias can be seen building up for guidance, one shouldn't take a call on a company on its quarterly performance. From technology pack, he prefers Infosys followed by HCL Technologies.
CLSA sees downside risk to its earnings if India demand, SMP margin do not rise. It feels, FY17 estimates already priced in improvement in Indian auto demand. "At 30 times FY16e and 22 times FY17e, the stock is trading at expensive valuations," says the brokerage.
According to average of estimates of analysts polled by CNBC-TV18, revenue is seen increasing 13.6 percent to Rs 9,534 crore compared to Rs 8,391.5 crore year-on-year, led by ramp up of new plants.
The auto component manufacturer's profit was expected at Rs 265 crore on revenue of Rs 8,679 crore for the quarter, according to a CNBC-TV18 poll.
Motherson Sumi Systems' third quarter profit increased 1.8 percent year-on-year to Rs 254 crore on consolidated basis, impacted by higher expenses.
Motherson Sumi Systems' third quarter profit after tax is expected to increase 6 percent year-on-year to Rs 265 crore on consolidated basis, according to a CNBC-TV18 poll.
Around 75 percent of Motherson's loans are in euros. Sehgal said the quantum of euro-denominated loans was around 750-800 million
Auto component maker Motherson Sumi is positive on performances from the standalone and the other two arms. Its management tells CNBC-TV18 that the focus would lie on increasing the ROCE going forward.
