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This auto ancillary stock soars 13% after Q2 PAT jumps 35% YoY. Do you own it?

By · Published by Everything Blog

In short

The company's quarterly revenue from operations advanced 47% year-on-year to Rs 4,504 crore, supported by higher customer volumes and newly commissioned greenfield sites. Operating earnings reflected disciplined working capital management alongside a sequential net profit increase of 54% to reach Rs 223 crore. First-half performance also trended higher with a 42% revenue increase and net profit of Rs 369 crore. Despite recent double-digit share price gains, the equity continues to trade at a substantial discount compared to its annual peak.

Key points

  • Expanding content per vehicle and securing electric vehicle programs continue to power th…: Expanding content per vehicle and securing electric vehicle programs continue to power the company's top-line growth.
  • Operational efficiencies and project ramp-ups helped preserve margins despite pressure fr…: Operational efficiencies and project ramp-ups helped preserve margins despite pressure from elevated global copper prices.
  • The company's shares remain down 20% year-to-date and sit over 50% below their 52-week hi…: The company's shares remain down 20% year-to-date and sit over 50% below their 52-week high of Rs 53.55.

Sources checked by our analysis pipeline: 1

The auto ancillary company’s revenue from operations came in at Rs 4,504 crore, registering an impressive increase of 47% from Rs 2,752 crore posted in the corresponding quarter of the previous financial year, the company said in a regulatory filing.

The company said premiumisation-led growth, driven by higher content per vehicle and new wins across EV and ICE models, continued to be a key growth driver. Timely expansion and ramp-up of greenfield projects supported higher customer volumes, while performance remained resilient despite headwinds from elevated copper prices and other cost inflationary pressures. The company also maintained its focus on financial prudence through disciplined working capital management.

Vivek Chaand Sehgal, Chairman of Motherson Sumi Wiring India Ltd., said the company’s resilient performance reflected continued customer trust and strong execution capabilities. He said business growth was driven by higher customer volumes, rising content per vehicle and participation in new model launches across both EV and ICE platforms.

He added that the company’s teams remained focused on improving operational efficiencies and maintaining financial discipline while navigating elevated commodity costs. Sehgal thanked customers for…

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