**Motherson Sumi– Q3 FY20 (Un Audited –Cons)**
CMP: 188
Total revenue from operations at 15,661 Cr
16,472 Cr (-4.92%) YoY | 15,924 Cr (-1.61%) QoQ
Nine Months ending revenue: 48,377 Cr Vs. 46,353 Cr (3.01%)
Net Profit of 340 Cr
555 Cr (-38.71%) YoY 457 Cr (-26.62%) QoQ
Nine Months ending Net profit: 1,159 Cr Vs. 1,669 Cr (-30.53%)
EPS (in Rs.) 0.86
1.23 YoY | 1.22 QoQ
Nine Months ending EPS: 3.12 Vs. 3.81
View: Result is below expectation and continuously declined. YoY and QoQ revenue declined and profit significantly down in YoY and QoQ.
**Business Updates & Highlights**:
EBITDA in Q3FY20 is around INR 1,264 Cr Vs. 1,415 Cr in Q3FY19 therefore declined by 10.6% in YoY. 9MFY20 EBITDA is around INR 3,630 Cr Vs. 4,127 Cr in Q3FY19 therefore down by 12% in YoY.
Export revenue in Q3FY20 is around INR 13,837 Cr Vs. 14,494 Cr in Q3FY19 therefore declined by 4.5% in YoY.
Domestic revenue in Q3FY20 is around INR 1,599 Cr Vs. 1,740 Cr in Q3FY19 therefore declined by 8% in YoY.
Gross debt as of Dec 2019 is around INR 12,809 Cr Vs. 12,715 Cr in Q2FY20.
ROE and ROCE is around INR 12% and 17% respectively and book value per share is around INR 18 and share is currently trading at 6.4x of its book value. Company is currently trading at annualized PE of around 32 which is high as per Industry benchmark. Promoter holding is around 61.7% in the company which is good, **Promoter has pledged around INR 2,298 Cr worth of shares** FIIs and mutual fund hold around 16.3% and 10% in the company.
**Share View**: Share price high 175 (52 week) and now 124. Motherson Sumi Systems Limited (MSSL) is one of the world’s leading specialised automotive component manufacturing companies for OEMs. MSSL is currently the largest auto ancillary in India. The company has a presence in 41 countries across five continents.
Short term outlook is in bearish mode due to quarterly performance down and continuously declined. Long term investor can take the cautious approach to continue with the company as Auto sector growth is still negative outlook.
Opportunities: Specialized in automotive component, long term track record. Despite slow down and negative growth still showing slightly negative growth in topline.
Risk: Share pledged by the promoter, automobile sector negative growth continues and subdued quarterly performance.
Disclaimer: Views are shared based on market research and study and personal in nature. Others can take the different view and opinions. Please do the thoroughly study before enter or exit the shares.
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