In this blog, we will share our spotlight on Motherson Sumi Systems Ltd.
Motherson Sumi Systems Ltd. – Highlights
- Motherson Sumi Systems Ltd. was trading at Rs.269.10, up by 13.4% on the BSE.
- The stock is up by 164.08% in last one year as compared to a 53.29% surge in S&P Bse Sensex in the same period.
- The stock hit a fresh 52-week high of Rs.273 in today’s trading session.
- The rally in the stock was after the country’s largest auto ancillary company posted a robust performance for the quarter ended March 2021 (Q4FY21).
- On the back of strong operational performance, the company’s consolidated profit after tax (PAT) increased by 290% to Rs.714 crore in Q4FY21. In Q4FY20, it reported a profit of Rs.183 crore. Meanwhile, consolidated revenue increased 19% year on year (YoY) to Rs.17844 crore from Rs.15001 crore in the previous year quarter, and EBITDA margin increased 190 basis points (bps) to 11.2% from 9.3% in the previous year quarter.
- Consolidated revenues in Q4FY21 were higher than pre-Covid levels, according to the company, as global industrial activity increased. “Despite a number of headwinds such as chip shortages and higher commodity costs, the company maintained profitability. Production shutdowns in India and global semi-conductor shortages are likely to be short-term headwinds for OEM production “as per the company.
- The Company’s Board of Directors recommended a dividend of Rs.1.50 (Rupee One and Fifty Paisa) per equity share (face value of Re. 1/- each) on the Company’s Equity Share Capital for the fiscal year ended March 31, 2021, subject to shareholder approval at the ensuing 34th Annual General Meeting (“AGM”).
- Incorporated in 1986, MSSL is a world-class manufacturer of specialized automotive components for original equipment manufacturers (OEMs). The company has a presence in 41 countries across five continents and has a diverse global customer base that includes nearly all of the world’s leading automobile manufacturers. In India, the company’s business consists of designing, manufacturing, and supplying wiring harness systems to domestic customers in segments such as passenger cars, commercial vehicles, motorcycles/two-wheelers, etc.
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Disclaimer: This document and the process of identifying the potential of a company has been produced for only learning purpose. Since equity involves individual judgments, this analysis should be used for only learning enhancements and cannot be considered to be a recommendation on any stock or sector.
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