(Reuters) -Motherson Sumi Wiring India reported lower fourth-quarter profit on Friday as higher costs weighed.
The company, which sells wiring harness solutions to carmakers including Maruti Suzuki and Tata Motors, said its profit fell 14% to 1.65 billion rupees ($19.3 million) in the quarter ended March 31.
Its total revenue from operations grew 12% to 25.1 billion rupees.
For further results highlights, (click here).
KEY CONTEXT
The company, which counts copper as its key raw material, said costs remained elevated in the January-to-March period. Its input costs rose 12% to 15.93 billion rupees in the three months.
Motherson Sumi is setting up greenfield plants to serve its auto industry clients, with the plants at different stages of completion. The expansion plans had a 230 million rupee impact on the company’s profit after tax during the March quarter, as per its investor presentation.
Last month, peer Exide Industries posted a smaller-than-expected quarterly profit due to high input costs and sluggish automotive demand.
PEER COMPARISON
Valuation (next 12 Estimates (next 12 Analysts’ sentiment
months) months)
RIC PE EV/EBITDA Revenue Profit Mean No. of Stock to Div
growth (%) growth (%) rating* analyst price yield
s target** (%)
Motherson Sumi 31.31 19.87 13.74 26.87 Buy 12 0.84 1.24
Wiring India
Bosch 38.12 31.26 10.96 13.64 Hold 4 1.03 1.25
UNO Minda 43.02 23.21 18.44 24.73 Buy 16 0.82 0.25
Exide Industries 23.38 14.06 8.03 14.48 Hold 14 0.89 0.55
* 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
JANUARY-MARCH STOCK PERFORMANCE
— All data from LSEG
— $1 = 85.4200 rupees
(Reporting by Manvi Pant in Bengaluru; Editing by Sherry Jacob-Phillips and Mrigank Dhaniwala)
