Motherson Sumi standalone disappoints; revenues better than expected on consolidated basis

The company's standalone revenues were at Rs. 1,269 cr a muted growth of 2.3% yoy but a decline of 8.9% qoq.

Motherson Sumi disappointed on standalone performance with a miss on revenues, operating profit and PAT of 5.6%, 15.7% and 29.4% respectively, according to IIFL. Standalone revenues were at Rs. 1,269cr a muted growth of 2.3% yoy but a decline of 8.9% qoq. OPM was at 17.6% v/s expectations of 19.7% but was higher by 42 bps yoy. PAT was at Rs. 119 cr a growth of 5.4% yoy but a sharp fall of 45.3% qoq.

Consolidated performance, however, was better than expectations in terms of revenues. OPM was at 9.9% v/s our estimate of 10.1%. PAT was at Rs. 307 cr vs our estimate of Rs. 313cr. Better show at consolidated level was because of better than expected performance at SMR. SMP performance was lower than estimates.