Rising Costs Impact Motherson Sumi's Earnings in March Quarter

Motherson Sumi Wiring India Ltd, a leading manufacturer in the auto components sector, has reported a notable drop in profits for the March quarter. The company announced a 13.85% decline in net profit, which fell to Rs 164.93 crore, attributed to soaring expenses and raw material costs. Despite these challenges, total revenue rose to Rs 2,509.52 crore, up from Rs 2,232.67 crore year-on-year.

In its regulatory filing, the company highlighted that total expenses for the quarter amounted to Rs 2,291.44 crore, an increase from Rs 1,986.54 crore in the same period the previous year. A key factor in these rising expenses was the cost of materials consumed, which reached Rs 1,592.7 crore, compared to Rs 1,419.1 crore previously.

Looking ahead to the 2024-25 fiscal year, Motherson Sumi anticipates a further decline in annual profits to Rs 605.86 crore from Rs 638.3 crore in 2023-24. Nevertheless, total revenue is projected to climb to Rs 9,320.28 crore, showcasing the company's enduring growth in operations despite the profit pressures.

(With inputs from agencies.)