Motherson Sumi Wiring India Limited (MSWIL) has announced its best-ever quarterly performance for Q2, showcasing robust growth and strategic expansion. The company's financial results reflect strong market demand and successful ramp-up of new facilities.

Key Financial Highlights

Performance Insights

MSWIL's exceptional performance significantly surpassed industry benchmarks, driven by a robust volume content mix and the company's strong presence across new OEM model launches. The company's strategic focus on premiumization has contributed to its impressive results.

Greenfield Operations

• Utilization reached 36.00%, showing improvement from previous quarters
• Reported losses of Rs 46.00 crore, compared to Rs 31.00 crore in the previous quarter
• Management indicates improving situation when adjusted for certain recoveries

Electric Vehicle (EV) Segment Growth

MSWIL's share in the EV segment increased to 7.00% from 5.00% in the previous quarter, indicating the company's growing presence in this rapidly evolving market.

Operational Challenges and Outlook

• Copper prices increased 5.00% quarter-on-quarter and 13.00% year-on-year, impacting raw material costs
• Customer compensation for increased copper prices occurs with a quarterly lag
• Staff costs have stabilized in the Rs 475.00-480.00 crore range
• Budgeted CAPEX of around Rs 210.00 crore for the current year

Management Commentary

Vivek Chaand Sehgal, Chairman of MSWIL, expressed satisfaction with the company's performance, stating, "MSWIL has delivered exceptional performance, significantly surpassing the industry benchmarks. This achievement reflects a robust volume content mix complemented by the premierization of our strong presence across the majority of the new OEM models launched."

The management also highlighted that most of their upcoming Greenfields are currently in the ramp-up phase, aligning with evolving customer requirements.

As MSWIL continues to navigate the dynamic automotive landscape, its focus on operational efficiency, strategic expansion, and adaptation to market trends positions it well for sustained growth in the coming quarters.

Motherson Sumi Wiring India Limited (MSWIL) has announced its financial results for the second quarter, showcasing robust growth and strong performance in the automotive wiring harness segment.

Key Financial Highlights

Revenue Growth and Performance

MSWIL reported a significant year-on-year revenue growth of 18.8% for Q2, with total revenue from operations reaching Rs. 2,761.86 crores compared to Rs. 2,325.64 crores in the same quarter last year. This growth substantially outpaced the passenger vehicle industry's growth of 4% year-on-year, highlighting MSWIL's strong market position and execution capabilities.

The company's performance was driven by increased premiumization, volume growth, and its presence in new model launches. Notably, the Electric Vehicle (EV) segment contributed 6.7% to the overall revenue for Q2, indicating MSWIL's growing footprint in the emerging EV market.

Profitability and Operational Efficiency

Net profit for the quarter stood at Rs. 165.34 crores, marking an 8.7% increase from Rs. 152.08 crores in Q2 of the previous year. The company's EBITDA grew by 12.1% to Rs. 280.49 crores, reflecting improved operational efficiency despite challenges in the global supply chain and inflationary pressures.

Strategic Expansions and Future Outlook

MSWIL has made significant progress in its expansion plans:

• One of the three Greenfield projects has successfully commenced operations as per schedule, with production ramping up in the coming quarters.
• The Kharkhauda (Haryana) facility, focused on ICE (Internal Combustion Engine) vehicles, became operational in Q2 and is progressing as planned.
• The Pune facility for EV and ICE vehicles is operational and in the ramping-up stage.

These strategic expansions are expected to drive future growth and strengthen MSWIL's market position in both traditional and electric vehicle segments.

Financial Position

MSWIL continues to maintain a strong financial position with a debt-free status, excluding lease liabilities. As of September 30, the company reported cash and bank balances of Rs. 63.34 crores.

Management Commentary

Mr. Vivek Chaand Sehgal, Chairman of Motherson Sumi Wiring India Ltd., commented on the results: "We are proud to report robust performance during Q2 for MSWIL. Our ability to consistently outperform the industry is a testament to the trust our customers place in us and the dedication of our teams. The ramp-up of our Greenfield projects is underway and is aligned with the ICE and EV program ramp-up plans of our customers. We remain focused on delivering sustainable value to all stakeholders while maintaining our strong financial discipline and debt-free status."

The company's strong performance in Q2, coupled with its strategic expansions and focus on both ICE and EV segments, positions MSWIL well for sustained growth in the evolving automotive industry landscape.