Mumbai: Auto parts maker Motherson Sumi Systems Ltd on Thursday said its quarterly net profit nearly tripled as sales surged due to a booming domestic market and robust revenues from an overseas acquisition made last year.
The company reported a consolidated net profit of Rs74.88 crore in Oct-Dec from Rs25.39 crore a year ago.
Net sales soared to Rs1,780 crore compared with Rs546 crore.
A Reuters poll of brokerages forecast a net profit of Rs47.63 crore on sales of Rs1,711 crore.
Its unit Samvardhana Motherson Reflectec (SMR) contributed Rs1,120 crore in sales to its consolidated revenues for the quarter.
Motherson Sumi had acquired Europe-based Visiocorp’s rear view mirror business in March, which was then renamed as Samvardhana Motherson Reflectec.
“Domestic growth too has been phenomenol, domestic sales have grown about 58% on a consolidated basis,” said Pankaj Mittal, Motherson’s chief operating officer.
Motherson Sumi makes a range of auto parts from rear-view mirrors to wiring harness and high-tension cords. It also makes products for the construction equipment sector.
It counts Maruti Suzuki, Hero Honda, Mahindra & Mahindra and Tata Motors among its clients, all of whom have seen sales surging on robust consumer demand.
Its earnings included an expense of Rs9 crore related to a restructuring of SMR’s plants and operations in Europe and Australia. The restructuring cost was much lower than that seen in previous quarters, Mittal said.
In July-Sept, Motherson had incurred a restructuring cost of Rs22.9 crore related to SMR.
“The major restructuring is over, some amount of restructuring will continue,” he said.
“We have said in the short to medium term we do see an Ebitda of 8 to 10% coming from SMR and we are moving in that direction”.
Shares of Motherson Sumi ended up 1.11% at Rs137 in the Mumbai market.