MUMBAI: Automobile components maker Motherson Sumi Systems Ltd impressed the Street with better-than-expected performance for the March quarter.
The stock continued to gain, rising 1% on Wednesday. It rose 5% on Tuesday. Revenues dropped 12% from the year ago quarter. But thanks to the fall in raw material prices and cost reduction measures, profit margins improved.
Consequently, operating earnings during the quarter grew 7%. The 1.6 percentage points expansion in operating margin came as a pleasant surprise.
Considering sluggish automobile sales and pressure on revenues, many analysts had expected the company to report a significant decline in operating earnings. “Motherson Sumi’s 4Q FY20 operating performance was driven by strong