Motherson Sumi Wiring India's Q2 profit rises on healthy demand

Motherson Sumi Wiring India

31/10/2023 10:56

BENGALURU, Oct 31 (Reuters) - Motherson Sumi Wiring
India  MSWI.NS  on Tuesday reported a near 34% increase in
second-quarter profit as strong demand for its products, led by
an optimistic automotive industry, outweighed higher input
costs. 
    The company's profit rose to 1.56 billion rupees ($18.74
million) in the three months ended Sept. 30 from 1.16 billion
rupees a year ago. 
    Automakers' optimism about festive season demand pushed up
inventory levels in the quarter, which helped the company
increase sales of products like wiring harnesses, used in making
vehicles. 
    Total revenue from operations grew 14.7% to 21.05 billion
rupees. 
    Noida-based Motherson Sumi, a joint venture between India's
Samvardhana Motherson International  SAMD.NS  and Japan's
Sumitomo Wiring Systems, counts Maruti Suzuki, Tata Motors and
Hyundai among its clients. 
    The growth in revenue outpaced a 12.5% rise in total
expenses, led by a spike in cost of raw materials consumed.
     Analysts said that prices of copper, a key raw material for
wiremakers, had risen about 8% year-on-year. 
    Shares of the company settled 0.25% lower after the results.
They are up about 3% so far this year compared to a more than
23% rise in the Nifty Midcap 100 index  .NIFMDCP100 .

($1 = 83.2341 Indian rupees)

 (Reporting by Hritam Mukherjee in Bengaluru; Editing by Sonia
Cheema)
 ((Hritam.Mukherjee@thomsonreuters.com; X: @MukherjeeHritam;))