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Motilal Oswal Report
Motherson Sumi Wiring India Ltd.'s Q2 FY23 revenue/Ebitda/adjusted profit after tax grew 31%/2%/2% YoY to Rs 18.35 billion/ Rs 1.8 billion/Rs 1.2 billion, respectively. H1 FY23 revenues/Ebitda/adjusted profit after tax grew 39.5%/ 33.5%/38.5% YoY.
Gross margins eroded 130 basis points QoQ (down 180 bps YoY) to 33.8% (versus estimated 35.2%), due to weaker mix and higher raw material costs (YoY).
Ebitda margins eroded 220 bps QoQ (down 280 bps YoY) to 9.9% (versus estimated 13.9%) due to start-up cost of new plants and extra costs for meeting higher demand.
Motherson Sumi Wiring's Ebitda grew 2% YoY (down 11% QoQ) to ~Rs 1.8 billion (versus estimated Rs 2.55 billion).
We lower our FY23E earnings per share by 16% to factor in for the one-off/transitory costs, but maintain our FY24 EPS estimates as new plants ramp up.
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