Shares of Motherson Sumi Wiring India rose as much as 13% to a day's high of ₹39.70 on the BSE on Monday after the company reported higher second-quarter earnings, The Economic Times reported.
Net profit for the September quarter rose 35% from a year earlier to ₹223.37 crore from ₹165.34 crore, Autocar Professional reported. Revenue from operations rose 47% to ₹4,053.83 crore from ₹2,761.86 crore.
Compared with the June quarter, profit rose 54% from ₹145.32 crore and operating revenue rose 19% from ₹3,407.26 crore, according to the same report.
What drove it
The company credited higher content per vehicle, new wins across electric and combustion-engine models, and the ramp-up of its greenfield projects, The Economic Times reported.
Chairman Vivek Chaand Sehgal said: "The growth in the business has been supported by higher customer volumes, increasing content per vehicle and our participation in new model launches across both EV and ICE platforms." He added that the company's teams were navigating elevated commodity costs.
Why it matters
Revenue is growing quickly, but costs are growing faster. Total expenses rose 48% to ₹3,755.64 crore, and the cost of materials consumed rose 55% to ₹2,905.46 crore, alongside elevated copper prices, Autocar Professional reported.
EBITDA rose 34% to ₹374 crore from ₹280 crore, Investywise reported. On those figures, the margin slipped to about 9.2% of revenue from about 10.1% a year earlier.
For the first half, revenue rose 42% to ₹7,461.09 crore, and profit rose 20% to ₹369 crore.
The stock
Despite Monday's rise, the shares were down 20% since the start of the year, The Economic Times reported. Even at the day's high, the stock stood about 26% below its 52-week high of ₹53.55.
This report is for information only and is not investment advice.