Motherson Sumi Systems falls 6% after Q4 earnings miss analyst estimates

Auto ancillary company Motherson Sumi Systems share price fell 6 percent intraday on Wednesday after March quarter earnings missed analyst expectations.

Consolidated profit during the quarter grew by 9.2 percent year-on-year to Rs 518.4 crore, backed by revenue growth. Weak operating margin performance and lower other income hit bottomline growth.

Revenue from operations in March quarter shot up 36.9 percent to Rs 15,408 crore YoY, driven by Samvardhana Motherson Peguform (SMP) and Samvardhana Motherson Reflectec (SMR) that reported 21 percent and 6 percent growth, respectively.

"We are very grateful for the continued trust of our customers, which reflects in our order book being the highest ever at Rs 1.3 lakh crore (Euro 17.2 billion) at SMRP BV," Vivek Chaand Sehgal, Chairman, MSSL said.

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Motherson bagged new orders worth Rs 18,109 crore (euro 2.4 billion) during second half of FY18 and for the full year the new orders won were worth over Rs 35,464 crore (euro 4.7 billion), the company said, adding execution of orders worth over Rs 3,320 crore started during second half of FY18.

Revenue growth remained strong but operational performance was not that great.

SMR, the rear vision systems maker, posted EBIT (earnings before interest and tax) growth of 12 percent with margin expansion of 50 basis points while SMP, the maker of interior and exterior products for automotive industry, showed EBIT growth of 8.77 percent with margin contraction of 50 basis points.

Consolidated EBITDA (earnings before interest, tax, depreciation and amortisation) in Q4 grew by 17.8 percent to Rs 1,419 crore but margin fell 150 basis points to 9.2 percent compared to same quarter last year.

Other income halved to Rs 61.5 crore in quarter ended March 2018 compared to Rs 124.6 crore in corresponding period of last fiscal.

According to Reuters poll estimates, profit was expected at Rs 539 crore on revenue of Rs 15,407.8 crore with EBITDA at Rs 1,500.1 crore.

For the financial year 2017-18, profit grew by 25 percent to Rs 1,939 crore and revenue increased 33 percent to Rs 55,857 crore compared to previous year.

At 14:09 hours IST, the stock price was quoting at Rs 322.40, down Rs 12.55, or 3.75 percent on the BSE.