Auto ancillary company Motherson Sumi Systems has reported a 3.6 percent year-on-year growth in Q2 FY20 net profit due to lower tax cost while operating performance was ahead of analyst estimates. As a result, the stock rallied 3.7 percent intraday on November 11.
Consolidated profit increased to Rs 384.6 crore against Rs 371.07 crore in the same period last year.
Consolidated revenue from operations rose 5.4 percent YoY to Rs 15,924.2 crore, with Samvardhana Motherson Peguform showing a 14.66 percent growth and PKC growing 6.8 percent.
The company’s standalone business degrew 17.2 percent YoY. Samvardhana Motherson Reflectec (SMR) reported a 1.48 percent decline in revenue.
Consolidated earnings before interest, tax, depreciation and amortisation (EBITDA) rose 2.1 percent YoY to Rs 1,319 crore and margin contracted 25 bps YoY to 8.3 percent in Q2, but were ahead of analysts’ estimates.
According to average of estimates of analysts polled by CNBC-TV18, EBITDA was expected at Rs 1,244.1 crore with margin at 7.8 percent for the quarter gone by.
SMR’s earnings before interest and tax (EBIT) degrew 8.4 percent and margin contracted 50 bps YoY. SMP’s EBIT dropped 81.3 percent and margin fell 110 bps YoY during Q2.
Motherson Sumi’s tax expenses fell 27.5 percent to Rs 187 crore due to lower corporate tax rate.
The stock was quoting at Rs 132.65, up Rs 3.40, or 2.63 percent on the BSE at 11:39 hours IST.
News Source: Moneycontrol