BENGALURU (Reuters) – Motherson Sumi Wiring India Ltd reported a nearly three-fold jump in quarterly profit on Tuesday on the back of a recovery in the automotive industry and operating efficiencies.
Motherson Sumi’s profit rose to 1.38 billion rupees ($16.9 million) in the fourth quarter ended March 31, from 464.2 million rupees, a year earlier.
Japan’s Sumitomo Wiring Systems holds a 25% stake in the company, which makes wiring harnesses and other electrical wires used in vehicles as well as in other industrial applications. Its clients include companies like Maruti, Tata and Hyundai.
Domestic retail vehicle sales had jumped 14% to more than 2 million in March on festival demand and buying ahead of the implementation of new fuel emission norms, according to data from the Federation of Automobile Dealers Associations.
Motherson Sumi’s total revenue from operations increased 12% to 18.64 billion rupees during the quarter, marking its highest-ever quarterly revenue since the start of operations as an independent entity in January 2022.
The cost of materials consumed rose about 17% to 12.55 billion rupees during the quarter.
Motherson’s focus on operational efficiency has driven profitability, it said in a statement.
“Ramp-up phase of new facilities is over and the utilisation will scale up in the upcoming quarters,” Chairman Vivek Chaand Sehgal said in the statement.
($1 = 81.7800 Indian rupees)
(Reporting by Ashna Teresa Britto in Bengaluru; editing by Eileen Soreng)
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