India's Motherson Sumi Wiring beats Q3 profit estimates on strong demand

Motherson Sumi Wiring India

31/01/2024 10:25

BENGALURU, Jan 31 (Reuters) - Motherson Sumi Wiring
India  MSWI.NS  reported a higher-than-expected third-quarter
profit on Wednesday, buoyed by strong demand for its wiring
harness solutions from the automotive industry.
    The Noida-based company said its profit rose more than 58%
to 1.68 billion rupees (about $20 million) in the three months
ended Dec. 31, beating analysts' estimates of 1.47 billion
rupees, per LSEG data.
    The demand for wiring harnesses, used in making vehicles,
surged in the December quarter as vehicle sales jumped during
the 42-day festive season.    
    Motherson Sumi, which counts Maruti Suzuki  MRTI.NS , Tata
Motors  TAMO.NS  and Ashok Leyland  ASOK.NS  among its clients,
said its total revenue from operations jumped 25.5% to 21.17
billion rupees.
    The growth in revenue outpaced a 22.8% rise in total
expenses, led by a spike in the cost of key raw material -
copper.
    The company is a joint venture between India's Samvardhana
Motherson International  SAMD.NS  and Japan's Sumitomo Wiring
Systems. 
    Shares of Motherson Sumi rose as much as 3.5% after the
results. 


($1 = 83.0325 Indian rupees)

 (Reporting by Manvi Pant in Bengaluru; Editing by Subhranshu
Sahu and Sohini Goswami)
 ((Manvi.Pant@thomsonreuters.com; +918447554364;))