INDIA: Motherson Sumi Q3 profit beats estimates
Diverse Indian auto partsmaker Motherson Sumi Systems has posted a 41% jump in quarterly profit, beating estimates.
Consolidated profit for the fiscal third quarter to 31 December was INR1.06bn on a 17% rise in revenue to INR20.83bn.
A Reuters poll of analysts had forecast profit to rise 17% to INR876m on revenue of INR20.8bn. The profit was led by strong volume growth aided by capacity expansion, cost controls and good performance by European unit Samvardhana Motherson Reflectec (SMR), CFO G N Gauba told the news agency.
Sales from India, that makes up about 40% of company's total turnover, grew 62% in the quarter, while overseas revenue fell about 2% in rupee terms although it rose by about 10-12% in euro terms, Gauba said.
Motherson Sumi whose products include wiring and mirrors, plans to expand capacity to take advantage of rising demand in India and other emerging markets.
The company expects to commission four plants in India and one each in South Africa and Hungary in 2011. Its unit SMR will commission a mirror plant each in Brazil and Thailand by end-2012, Mital said.
Motherson plans to spend 5bn rupees in 2011/12, as much as in the current fiscal, on expansion, Mital said, adding the expansion would be funded through internal accruals.