Motherson Sumi Wiring India (MSWI.NS) reported a solid increase in its second-quarter profit on Wednesday, helped by stronger festive-season demand and higher output from one of its new manufacturing facilities.
The company, a key supplier of wiring harnesses to automakers such as Maruti Suzuki and Tata Motors, said its profit rose about 9% to 1.65 billion rupees (around $19 million) for the quarter ended September 30.
Total revenue climbed 19% to 27.62 billion rupees, while total expenses increased 19.5% to 25.42 billion rupees, largely due to higher copper prices — one of the company’s main raw materials.
Industry and Operations
India’s automobile market, which had seen weak demand in recent quarters, has begun to rebound with the onset of festivals and tax relief measures boosting consumer sentiment.
Motherson Sumi continues to invest in its expansion strategy, though it faces short-term start-up costs. Of its three new greenfield plants, one has begun ramping up production, contributing to stronger earnings this quarter, while the other two are still in progress.
Peer Comparison
Compared to industry peers, Motherson Sumi Wiring India holds a favorable outlook from analysts:
| Company | P/E | EV/EBITDA | Revenue Growth (%) | Profit Growth (%) | Mean Rating | Analysts | Stock/Target Ratio | Dividend Yield (%) |
|---|---|---|---|---|---|---|---|---|
| Motherson Sumi Wiring India (MSWI.NS) | 38.00 | 23.57 | 14.23 | 22.48 | Buy | 12 | 1.02 | 1.20 |
| Bosch (BOSH.NS) | 42.97 | 36.05 | 8.63 | 14.44 | Hold | 4 | 1.09 | 1.37 |
| UNO Minda (UNOI.NS) | 51.73 | 28.72 | 17.67 | 26.05 | Buy | 17 | 0.99 | 0.18 |
| Exide Industries (EXID.NS) | 24.96 | 14.62 | 7.32 | 12.74 | Hold | 12 | 0.95 | 0.52 |
(Data source: LSEG; $1 = 87.8950 rupees)
Market Context
The company’s performance mirrors a broader uptick in India’s auto component sector as manufacturers ramp up production to meet renewed demand. Analysts note that the combination of festive spending and operational improvements has positioned Motherson Sumi favorably for the rest of the fiscal year.
On Tuesday, U.S. stocks closed sharply lower, with the Dow Jones Industrial Average down more than 0.5% and the S&P 500 slipping over 1%.
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