Motherson Sumi hits 52-week high on highest-ever quarterly revenue in Q3

Shares of hit 52-week high of Rs 194.55, ralling 9 per cent on the BSE in the intra-day trade on Friday, after the company reported highest-ever quarterly revenues of Rs 17,923 crore, up by 15 per cent over the previous year quarter, in Q3FY21.

The company’s consolidated profit after tax (PAT) more-than-doubled to Rs 798 crore from Rs 271 crore in the corresponding quarter of previous fiscal. Earnings before interest, taxes, depreciation, and amortization (Ebitda), meanwhile, grew 56 per cent year on year (YoY) at Rs 2,041, while margins improved 300 basis points (bps) to 11.4 per cent during the quarter.

On a standalone basis, the company posted robust performance with 27 per cent YoY growth in revenues and 49 per cent growth in PAT.

ICICI Securities had expected Motherson Sumi to report a steady performance in Q3FY21 amid a recovery in sales and moderation in Ebitda margins. On a consolidated basis, the brokerage firm expected the company to report total operating income of Rs 16,655 crore, up 6.3 per cent YoY. Ebitda in Q3FY21 was expected at Rs 1,403 crore with corresponding margins at 8.4 per cent, down 110 bps sequentially.

With the rollout of Covid vaccine in different parts of the world, the management is optimistic that the demand and positive sentiment will improve in the upcoming quarters.

“Operations have normalised with most facilities running at pre-Covid levels. The indications of positive consumer sentiments reflected by increased demand globally. The sustained improvements in performance of Greenfield plants with a continued focus on cost reduction and efficiency improvements,” the management said in a statement.

At 01:11 pm, the stock was trading 7 per cent higher at Rs 191 on the BSE, as compared to a 0.38 per cent gain in the S&P BSE Sensex. The trading volumes on the counter jumped three-fold with a combined around 85 million equity shares having changed hands on the NSE and BSE till the time of writing of this report.

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