Auto component maker Motherson Sumi Systems Ltd (MSSL) today reported over two-fold increase in its consolidated net profit at Rs 249.60 crore for the third quarter ended December 31, 2013, primarily on account of robust sales in overseas markets.
The company had posted a consolidated net profit of Rs 103.02 crore in the same period last fiscal, MSSL said in a filing to the BSE.
Net sales during the quarter under review stood at Rs 7,889.83 crore as against Rs 6,547.9 crore in the year-ago period.
"The company has delivered its best ever results in revenues as well as operating margins for a quarter. This is exceptional performance both in domestic and overseas businesses in current market conditions," Motherson Sumi Systems Ltd (MSSL) Chairman VC Sehgal said.
The company said it continues to get additional orders and is expanding its operations globally in line with requirements of its customers.
Commenting on the results, MSSL COO Pankaj Mital said that the company did exceedingly well in overseas markets during the third quarter.
The company, whose customers include all the major automotive players, including Maruti Suzuki, Hyundai and Tata Motors, currently gets more than 80 per cent of its revenues from overseas markets.
During the quarter, the company had a foreign exchange gain of Rs 32.26 crore on long-term loans, it said.
Revenue growth during the quarter was led by group firm Samvardhana Motherson Peguform which posted sales of Rs 4,091 crore. The group's sales in India was at Rs 1,146 crore while that of outside the country was at Rs 2,653 crore.
Commenting on the outlook for domestic market, MSSL CFO G N Gauba said: "We are optimistic about the Indian market. With new models slated to hit the market and general elections approaching, we think the market condition would improve."
Shares of MSSL today closed higher by 12.97 per cent at Rs 203.75 apiece on the BSE.
