InvestorQ : Why has the stock of Motherson Sumi rallied so sharply on Wednesday 02 June?
Dilmini Mercia made post

Why has the stock of Motherson Sumi rallied so sharply on Wednesday 02 June?

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Dawn Cherian answered.
2 weeks ago
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On Wednesday, the stock of Motherson Sumi rallied by 11% and hit a 52-week high level of Rs.273 after it posted a strong corporate performance in the Mar-21 quarter. Net profits of the company were up a whopping 290% at Rs.714 crore. This growth came on the back of strong operating performance by its global subsidiaries, which account for over 90% of its total revenues. SMP business saw a sharp turnaround in EBITDA performance in Q4.

On the top line, the total revenues were up 19% at Rs.17,844 crore even as EBITDA margins expanded by 190 bps to 11.2% in Q4. However, it has not been very smooth for the largest auto ancillary company in India. Due to the global chips shortage, Motherson Sumi is facing challenges like shortage of semiconductors apart from sky-high commodity costs. Despite all these challenges, the performance has been strong in the quarter.

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