Motherson Sumi falls post Q1 results; net profit jumps 62%, but below estimates

NEW DELHI: Shares of Motherson Sumi Systems plunged 5.32 per cent in trade on Thursday, after the company's consolidated net profit rose by a below-estimate 62% to Rs 266 crore for the quarter ended June.

The stock ended the day in red, down 4.86 per cent or Rs 19 at Rs 371.80.

The company had reported a net profit of Rs 164 crore in the year-ago period.

The stock hit day's low of Rs 370 on the BSE. It had hit its 52-week high ahead of the results.

The bottomline number came in much lower than ET Now's estimate of Rs 301 crore, partly thanks to Rs 24.60 crore forex lossses, the firm posted for the quarter.

Consolidated revenues grew by 12 per cent to Rs 9,252 crore compared to Rs 8,296 crore in the year-ago period.

The company said it is coming up with six new plants to take care of the customer requirements. Besides, there are 14 other plants at various stages of completion.

"We are strengthening our base to service the requirements of our customers and in line with the 2020 targets. The facilities that we are creating would form the foundation of our growth over the coming 5 years," VC Sehgal, Chairman, Motherson Sumi Systems, said in a statement.

The company’s subsidiary SMP has also been nominated in the Volkswagen Group Procurement Strategic Partners.