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.
Vivek Chaand Sehgal, Chairman of Motherson Sumi Systems, said that there‘s no slowdown as far as SMR is concerned. The changes adopted for accounting standards make SMR‘s margins look optically weak on quarterly basis, but they‘re still healthy margins, he said.
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.
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
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.
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.
Samvardhana Motherson Group's VC Sehgal says it is a mistake building a business solely with the idea that your children can inherit it
Vivek Chaand Sehgal, chairman, Motherson Sumi says the company has added lot of capacities. Even if the stock is down, people should go deeper into the company's numbers and they will find that the performance is phenomenal.
Pankaj Mital, COO, Motherson Sumi Group, feels the company's performance has been resilient in a volatile market, and has outperformed the industry. Talking to CNBC TV18, he stated that despite the slowdown, the company continued to bag large orders, recently from European carmakers too.
Ashish K Mishra reports how Motherson Sumi became giant auto parts manufacturer. From a non-descript business, Vivek Chand Sehgal has set up one of the top automotive parts companies in the world.
As Motherson Sumi's biggest customer Maruti is coming out of trouble, Vice Chairman Vivek Chaand Sehgal said that the company will deliver 40% return on capital employed (ROCE) as promised. Morover, he indicated that the car sales in Europe were not impacted by the prevailing uncertainties.
Many companies in India are struggling due to the economic slowdown around the world, mainly in European nations. However, Motherson Sumi Systems is not one of them.