Motherson Sumi Systems (MSSL) plunged 10% to Rs 316 on the BSE on profit booking after the company reported 13% year-on-year (YoY) jump in consolidated net profit of Rs 303 crore for the quarter ended June 30, 2016 (Q1FY17).
The company, a specialized automotive component manufacturing company for OEMs, had recorded a profit of Rs 267 crore in the year ago quarter. the company recorded its highest ever sales of Rs 10,352 crore, up 16% on YoY basis.
The EBITDA (earnings before interest, depreciation and taxes) profit increased 20% YoY at Rs 920 crore, while margin improved to 8.96% from 8.65%. Analysts expected EBITDA margin in the range of 9.2% to 9.5%.
“The revenues for first quarter of Fiscal 2016-17 have been our best ever. We have double digit growth on both revenues and profits. It reflects the tremendous momentum we have in our organic growth, propelling us towards our 2020 targets”, said Vivek Chaand Sehgal, MSSL’s Chairman.
The stock had seen a strong run-up ahead of Q1 results. It outperformed the market by surging 27% in past one month as compared to 3.5% rise in the S&P BSE Sensex till yesterday.
At 12:41 pm, the stock was down 5% at Rs 334, recovering nearly 6% from day’s low on the BSE. A combined 11.63 million shares changed hands on the counter so far against an average sub 4 million shares that were traded daily in past two weeks on the BSE and NSE.