India's Motherson Sumi posts 2.6% quarterly profit increase
Auto component maker pulls in more revenue after Finnish acquisition
KIRAN SHARMA, Nikkei staff writer
NEW DELHI -- Indian auto component supplier Motherson Sumi Systems on Tuesday reported a 2.6% year-on-year rise in consolidated net profit for the quarter ending December, to 5.62 billion rupees ($87.5 million).
The flagship company of Samvardhana Motherson Group said its operations generated nearly 144 billion rupees of total revenue for the third quarter of the fiscal year through March, compared with about 108 billion rupees for the same quarter a year earlier. Revenue outside India increased 38%, while the domestic figure climbed 20%.
Total quarterly expenses, meanwhile, rose to 136.35 billion rupees, up from 100.69 billion rupees a year earlier. Net profit attributable to owners dropped 12.3% to 3.64 billion rupees.
Known as MSSL for short, the company makes wiring harnesses, passenger car mirrors, plastic components, interior modules and trims, and bumpers. It said its October-December results are not truly comparable to the year-earlier quarter because of its $620 million acquisition of Finland's PKC Group last March.
The Helsinki-headquartered PKC designs, manufactures and integrates electrical distribution systems, electronics and related architecture components for commercial vehicles, including trucks and buses. It also supplies manufacturers of rolling stock. Its global plant network spans Brazil, China, Germany, Lithuania, Mexico, Poland, Russia, Serbia and the U.S.
MSSL, which is setting up nine new plants of its own, on Tuesday said they were at various stages of completion in the nine months through December, with four having started operations.
"Customer confidence remains high, and with new plants being commissioned or underway, the outlook remains positive," Chairman Vivek Chaand Sehgal said in a statement.
Based in Noida, near the capital of New Delhi, MSSL was established as a joint venture with Japan's Sumitomo Wiring Systems in 1986. As a global supplier to auto brands such as Daimler, Ford, Honda, Suzuki, Tata and Toyota, MSSL is a 100% original equipment manufacturer not tied to any single client. The Samvardhana Motherson Group has over 230 manufacturing facilities across 37 countries and employs more than 100,000 people.