motherson sumi wiring stocks: Motherson Sumi Wiring falls over 4% after Q2 results

Shares of fell 4.4% in Tuesday’s intraday trade after the company reported a 2% increase in net profit at Rs 116.45 crore in the second quarter of the financial year 2022-23. The company posted a net profit of Rs 114 crore in the same period last fiscal.

Total revenue from operations of the company stood at Rs 1,835.21 crore as against Rs 1,399.96 crore in the year-ago period.

Total expenses stood at Rs 1,689.77 crore compared to Rs 1,229.76 crore in the same quarter a year ago.

Vivek Chaand Sehgal, Chairman of Motherson Sumi Wiring India said, “Indian automotive industry is showing signs of revival and our customers are also ramping up production. This has resulted in one-time costs which should be mitigated in the coming quarters.”

“The company is well positioned to leverage India’s growth story and megatrends, thanks to our consistent performance and long-standing customer relationships,” he said.

The auto component maker said that its EBITDA in Q2 FY23 was impacted by expenditures such as initial one-time startup costs of new programmes in Bengaluru and a new facility in Chennai. To meet the increased volume, additional costs on expedited freight and extraordinary manpower costs, further aggravated by supply chain constraints, were incurred, the company said.

At 10.00 am, the scrip was trading 4% lower at Rs 84.25 over its previous day’s closing price of Rs 87.65 apiece. However, the stock has risen nearly 21% in the last six months, while it has surged about 36% year-to-date.

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