India's Motherson Sumi Wiring misses Q1 profit view on higher expenses

Motherson Sumi Wiring India

28/07/2023 09:51

July 28 (Reuters) - Motherson Sumi Wiring India
 MSWI.NS  on Friday missed first-quarter profit estimates, hurt
by higher expenses due to inflationary pressure.
    The company posted a profit of 1.23 billion rupees ($15
million) for the quarter ended June 30, down 2.4% year-on-year.
    The median estimate of analysts on Refinitiv was a profit of
1.35 billion rupees.
    Motherson Sumi's total revenue from operations increased
11.3% to 18.59 billion rupees, but was outpaced by a 13.5% rise
in expenses.
    Despite copper prices easing from a year ago, the company in
a statement said it saw inflationary pressure on wages and
salaries.
    However, the company's earnings before interest, tax,
depreciation and amortization (EBITDA) remained largely flat at
2.07 billion rupees, from 2.08 billion rupees a year ago.
    Motherson Sumi, 25% owned by Japan's Sumitomo Wiring
Systems, makes wiring harnesses and other electrical wires used
in vehicles as well as in other industrial applications.
    Its clients include companies like Maruti Suzuki, Tata
Motors and Hyundai's India unit.
    The company added that it has seen significant traction for
electronic vehicles growing 3% during the quarter as compared to
corresponding quarter.
    Shares of the company fell over 2% after the results.

($1 = 82.2759 Indian rupees)

 (Reporting by Ashna Teresa Britto in Bengaluru; Editing by
Varun H K)
 ((AshnaTeresa.Britto@thomsonreuters.com;))