Motherson Sumi Wiring India's Q2 profit falls on weak demand from carmakers

Motherson Sumi Wiring India

08/11/2024 10:14

Nov 8 (Reuters) - Motherson Sumi Wiring India  MSWI.NS  reported a 2.4% fall in second-quarter profit on
Friday, hurt by muted demand from carmakers.
    The company's profit fell to 1.52 billion rupees ($18 million) in the three months ended Sept. 30, from 1.56
billion rupees a year earlier.
    The company, which sells wiring harness solutions to carmakers including Maruti Suzuki  MRTI.NS  and Tata Motors
 TAMO.NS , posted a 10% rise in total revenue from operations to 23.26 billion rupees.
    For more highlight, click (nFWN3MF0R3)



KEY CONTEXT

    Indian carmakers' sales to dealers marked the first decline in 10 quarters in the July to September period, data
from an industry body showed. Sales dropped an aggregate 1.8% year-on-year decline to around 1.06 million in the
second quarter.
    Original equipment manufacturers like Motherson Sumi Wiring India depend heavily on carmakers' sales for their
revenue, as they are the primary suppliers of parts and components used in the production of vehicles.
    Rival Exide Industries  EXID.NS  posted a smaller-than-expected second-quarter profit. Bosch  BOSH.NS  and Uno
Minda  UNOI.NS  have yet to report results.

PEER COMPARISON
    
    
    
                                   Valuation (next 12   Estimates (next 12          Analysts' sentiment           
                                        months)              months)                                          
                           RIC        PE     EV/EBITD   Revenue     Profit     Mean     # of      Stock to      Div
                                                A      growth (%)   growth    rating*  analyst     price       yield
                                                                      (%)                 s       target**      (%)
 Motherson Sumi Wiring   MSWI.NS    32.66     21.02      14.67       22.09      Buy      11         0.84        1.24
         India                                                                                                
         Bosch           BOSH.NS    45.20     36.97      11.22       24.20     Hold       3         1.21        1.06
       UNO Minda         UNOI.NS    43.89     25.50      17.64       25.20     Hold      16         0.89        0.21
   Exide Industries      EXID.NS    27.85     16.75       8.71       15.46     Hold      14         0.97        0.45
 
    
* The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell

** The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading
above the PT    
    
    
JULY-SEPTEMBER STOCK PERFORMANCE  
 
     
-- All data from LSEG IBES

-- $1 = 84.3460 Indian rupees
    

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MSWI Q2    https://tmsnrt.rs/3Yxv6Cs
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 (Reporting by Ashna Teresa Britto in Bengaluru; Editing by Janane Venkatraman and Mrigank Dhaniwala)
 ((AshnaTeresa.Britto@thomsonreuters.com;))