Motherson Sumi Systems Q1 net profit rises 10%

NEW DELHI: Auto component-maker Motherson Sumi Systems on Friday reported a 9.61 per cent jump in consolidated net profit for the quarter ended June 30 to Rs 65.27 crore on the back of robust domestic sales.

The company had posted a net profit of Rs 59.55 crore for the corresponding period last year.

Consolidated total income also increased by 20.75 per cent during the first quarter to Rs 2,300.17 crore from Rs 1,904.89 crore in the year-ago period.

"Despite the challenging time, we had a very good result. Our domestic sales during the quarter grew by 33 per cent, while the exports went up by 16 per cent," Motherson Sumi Systems Ltd (MSSL) Chief Financial Officer G N Gauba told PTI.

During the quarter, raw material prices had less impact on the company, despite rising copper prices, as hikes were passed on to the OEM customers, he added.

When asked if the slowdown in automobile sales will affect the firm's performance, MSSL Chief Operating Officer Pankaj Mital said: "If sales of OEM are less, then it will obviously hurt us. Also, we cannot expect the market to grow at 25-30 per cent every year."

He, however, said the company is bullish on the arrival of new models by global car-makers in coming months.

Reacting to the numbers, shares of the company were trading 1.84 per cent down at Rs 234.40 apiece on the Bombay Stock Exchange in the afternoon.