Motherson Sumi Wiring down 6% as margins under pressure

Motherson Sumi Wiring India reported a mixed set of earnings for the second quarter of the current financial year (Q2FY23) as it recorded strong growth in revenue although margins contracted by 290 basis points year on year at 10.4 percent.

The company manufactures wiring harnesses in India. It go demerged from parent Motherson Sumi Systems and now has a joint venture with Sumitomo Wiring Systems.

“Because of the flurry of orders and the automotive market coming back, we needed two very urgent plants, one in Chennai and one in Bengaluru. These are one-offs and new negotiations will take place very quickly, which will settle the matter for the next half,” Vivek Chaand Sehgal, Chairman, told CNBC-TV18.

Talking about the order book, he said, “The demand is going to go up, but I do not want to guess some numbers. For us, it's very important that we supply exactly what the customer wants and the numbers.”

However, supply chain constraints, additional costs on freight, and extraordinary manpower costs further impacted the margins.