Motherson in top gear on strong operating performance

Higher capacity use and realisation should help improve margins

Automobile parts maker Motherson Sumi’s December quarter (Q3) show was in line with estimates. Consolidated revenue at Rs 10,514 crore was its highest ever for a quarter, versus expectation of Rs 10,700 crore. This was 13 per cent higher year over year, thanks to its performance abroad (subsidiaries SMR and SMP) and its Indian operations. Revenue from the two subsidiaries, which accounts for 86 per cent of consolidated sales, grew 12 per cent to Rs 9,061 crore over a year ago. Revenues from India were strong, up 24 per cent year on year.

The management said higher content per car and