Motherson Sumi Wiring India Sees Modest Q1 Profit Growth Amid Cost Pressures

Motherson Sumi Wiring India Ltd reported a marginal increase in Q1 net profit despite facing cost challenges. The company's net profit rose by 1.55% to Rs 145.32 crore for the quarter ended June 30, compared to Rs 143.1 crore in the same period last year.

Total revenue from operations grew to Rs 3,407.26 crore in Q1, up from Rs 2,494.03 crore in the prior fiscal. However, total expenses increased to Rs 3,217.26 crore, higher than Rs 2,305.26 crore in the same period a year ago.

The company cited higher average copper prices and significant minimum wage revisions as factors that impacted profitability. Despite this, Motherson Sumi Wiring India Ltd Chairman Vivek Chaand Sehgal said the company continues to outperform industry growth 'despite ongoing cost headwinds'.

According to the company, its expansion into greenfield projects and successful ramp-up of new customer programs contributed to revenue growth. The company is also continuing constructive discussions with customers to recover cost increases and maintain business momentum.