3 Reasons Why Motherson Sumi Shares Hit 52-Week High After Q3 Results

Shares of Motherson Sumi surged to hit a 52-week high after the company reported the highest-ever quarterly revenues on Friday.

Established in 1986, Motherson Sumi Systems is one of the world's leading specialized automotive component manufacturing companies for OEMs.

Reasons Why Motherson Sumi Hits 52-Week

1) Motherson Sumi announced the highest-ever quarterly revenues of Rs 17,923 crore, up by 15% over the previous year's quarter, in Q3FY21.

2) The company posted quarterly Profit After Tax (PAT) of Rs 798 crores, up by 194% and quarterly Earnings before Interest, Taxes, Depreciation, and Amortization (EBITDA), up by 56% at Rs 2,041.

3) The company reported robust results on a standalone basis, with sales growth of 27% a year and PAT growth of 49%. While margins increased during the quarter from 300 basis points (bps) to 11.4%.

Commenting on the results, Mr. Vivek Chaand Sehgal, Chairman, Motherson Sumi Systems Ltd said, "Our global teams have put in tremendous efforts in challenging conditions to ensure uninterrupted supplies to our customers. These quarterly numbers are a reflection of their hard work as well the trust of our customers on Motherson."

The management is hopeful that demand and favourable sentiment will increase in the coming quarters with the rollout of the Covid vaccine in various parts of the world.
MSSL is the Motherson Group's flagship firm, ranked 22nd by Automotive News among global automotive suppliers.

The stock was seen trading at Rs 197.30, higher by 10.04% on BSE at 03.02 pm IST. It touched an antra-day high of Rs 199.70 during the trade.

GoodReturns.in