(Reuters) -Motherson Sumi Wiring India posted a rise in second-quarter profit on Wednesday, boosted by production ramp-up in a greenfield plant and festive demand.
The company, which sells wiring harness solutions to carmakers including Maruti Suzuki and Tata Motors said its profit advanced about 9% to 1.65 billion rupees (about $19 million) in the quarter ended September 30.
Its total revenue grew 19% to 27.62 billion rupees, while expenses rose 19.5% to 25.42 billion rupees, owing to higher costs of copper – a key raw material.
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KEY CONTEXT
The Indian auto industry has seen subdued domestic demand in the past few quarters, but consumption advanced recently on the back of festivals and tax cuts.
Motherson Sumi has been hit with start-up expenses used to fund its expansion project, where two of the three greenfield plants are yet to begin production.
The ramp-up of production at one of its plants also aided its earnings in the reporting quarter, analysts have said.
PEER COMPARISON
Valuation (next 12 Estimates (next 12 Analysts’ sentiment
months) months)
RIC PE EV/EBITDA Revenue Profit Mean No. of Stock to Div
growth growth rating* analyst price yield
s target** (%)
Motherson Sumi 38.00 23.57 14.23 22.48 Buy 12 1.02 1.20
Wiring India
Bosch 42.97 36.05 8.63 14.44 Hold 4 1.09 1.37
UNO Minda 51.73 28.72 17.67 26.05 Buy 17 0.99 0.18
Exide Industries 24.96 14.62 7.32 12.74 Hold 12 0.95 0.52
* The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** The ratio of the stock’s last close to analysts’ mean price target; a ratio above 1 means the stock is trading above the PT
JULY-SEPTEMBER STOCK PERFORMANCE
— All data from LSEG
— $1 = 87.8950 rupees
(Reporting by Manvi Pant in Bengaluru)
