Auto components maker Motherson Sumi Systems on Thursday reported a profit after tax of Rs. 77.88 crore for the December quarter on the back of a good domestic wiring harness business as well as growth by its new European subsidiary.
The company had a PAT of Rs. 25.39 crore during the same quarter of last fiscal. The results of the two corresponding fiscals are not comparable because of acquisition of UK-based VisioCorp’s rear view mirror business in Europe March last year for 25 million euro.
“Our domestic wiring harness business registered a good growth on the back of revival in the auto industry. Besides, the European subsidiary Samvardhana Motherson Reflectec (SMR) has also turned profitable after we acquired it last year,” Motherson Sumi Systems Chief Operating Officer Pankaj Mittal told PTI.
The company reported total sales of Rs. 1,782.27 crore during the third quarter. It had sales of Rs. 546.49 crore during the year-ago period.
Mittal said the company has operationalised three new facilities for wiring harness during the past few months and one more would soon come on stream.
“The new plant at Chennai will be exclusively catering to the demand of Nissan’s facility there. Besides, we have put on stream facilities at Pune, Noida and Kandla during this fiscal,” he said.
Regarding SMR, Mittal said work is on to operationalise two plants for supplying rear-view mirrors to European auto makers from 2011.
“We will dedicate two plants for the project, including one of VisioCorp’s old facilities at Hungary. The supplies will start on time next year,” Mittal said.
Last year, SMR had bagged two orders with a combined value of 700 million euro from European auto makers, including Volkswagen, for supply on rear-view mirror over a five year period.
