Motherson Sumi Wiring has announced its third quarter financial results, showing a modest improvement in net profitability compared to the same period last year. The automotive component manufacturer reported net profit of ₹1.49 billion for the quarter, marking a year-on-year growth of 6.4% from the ₹1.40 billion recorded in the corresponding quarter of the previous fiscal year.

Financial Performance Overview

The company's quarterly results present a mixed picture, with growth in absolute terms but performance below market expectations. While the year-on-year increase demonstrates positive momentum, the actual results fell short of analyst projections.

Performance Analysis

The 6.4% year-on-year growth in net profit indicates steady operational progress for the automotive wiring systems manufacturer. However, the significant gap between actual performance and analyst estimates of ₹1.80 billion suggests that market expectations were not fully met during the quarter.

The variance between actual results and estimates amounts to approximately ₹310 million, representing a shortfall of 17.2% compared to analyst projections. This deviation highlights the challenges in accurately forecasting performance in the current business environment.

Market Context

The results come at a time when automotive component manufacturers are navigating various market dynamics. The modest growth achieved by the company reflects its ability to maintain profitability momentum, though the gap with estimates may influence investor sentiment and future market expectations for the automotive components sector.

Motherson Sumi Wiring India Limited has announced a comprehensive postal ballot notice seeking shareholder approval for multiple strategic initiatives, including the implementation of an Employee Stock Option Scheme 2025 and executive remuneration revision.

Employee Stock Option Scheme 2025 Details

The company proposes to introduce the 'Motherson Sumi Wiring India Limited– Employee Stock Option Scheme 2025' (ESOP 2025) through secondary acquisition route. The scheme will be administered through an irrevocable employee welfare trust named 'MSWIL ESOP Trust' to be established by the company.

The scheme targets eligible employees including designated employees working in India or outside India, and directors (excluding promoters, independent directors, and those holding more than 10% shares). The maximum number of options per employee shall not exceed 5,76,000 (Five Lacs Seventy Six Thousand).

Financial Assistance and Trust Structure

The company will provide financial assistance to the Trust through loans, guarantees, or security, limited to 5% of the aggregate paid-up capital and free reserves. The loan may be interest-bearing or interest-free, with tenure based on the scheme's term and repayment from exercise proceeds and other Trust income.

Executive Remuneration Revision

The postal ballot includes approval for revising the remuneration of Mr. Anurag Gahlot (DIN: 09455743), Whole Time Director designated as Chief Operating Officer, effective from April 01, 2025.

Mr. Gahlot will also be entitled to employee stock options under ESOP 2025, subject to Nomination and Remuneration Committee approval. His remuneration package includes various benefits such as house rent allowance, medical allowance, provident fund contributions, car facility, and other perquisites as per company policy.

Voting Schedule and Process

The company has established a comprehensive timeline for the postal ballot process, with e-voting facilitated through KFin Technologies Limited.

Resolutions Overview

The postal ballot covers four key resolutions:

• Special Resolution 1: Approval of ESOP 2025 scheme
• Special Resolution 2: Secondary acquisition of equity shares through Trust route
• Special Resolution 3: Provision for loans, guarantees, or security for Trust's share purchases
• Ordinary Resolution: Remuneration revision for Mr. Anurag Gahlot

The Board of Directors has recommended all resolutions for shareholder approval, emphasizing that the ESOP scheme will enable talent retention and motivation while aligning employee interests with long-term value creation. The secondary acquisition approach ensures no additional equity dilution for existing shareholders.

Shareholders can access the complete postal ballot notice and related documents on the company's website at www.mswil.motherson.com and participate in e-voting through https://evoting.kfintech.com .

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