Motherson Sumi Wiring India (MSUMI) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 revenue reached ₹2,326 crore, up 10.3% year-on-year, outperforming the industry due to increased content per vehicle and product mix changes.

• Expanded production capacity with two new greenfield facilities, incurring ramp-up costs.

• Passenger vehicle industry grew 6% sequentially, while two-wheelers saw 13% year-on-year growth and 7% sequentially, driven by festival demand and new model launches.

• EV revenue share stood at 4.1%, with ongoing innovation in EV, hybrid, and battery management systems.

• Unaudited financial results for the quarter and half year ended September 30, 2024, were approved by the Board on November 8, 2024.

Financial highlights

• Q2 FY25 revenue was ₹2,326 crore, up from ₹2,109.22 crore in Q2 FY24.

• EBITDA for Q2 FY25 was ₹250 crore, down 1.2% year-on-year, with margin declining by 120 basis points due to ramp-up costs at new plants.

• PAT for Q2 FY25 stood at ₹152.08 crore, a 2.6% decrease year-on-year.

• H1 FY25 revenue increased 13.3% year-on-year to ₹4,510.48 crore; H1 FY25 EBITDA grew 6.1% to ₹488 crore; PAT up 7.9% to ₹300.95 crore.

• Gross margin for Q2 FY25 was approximately 34.4%, improving quarter-on-quarter due to product mix.

Outlook and guidance

• New facility in Kakkalur expected to be operational in Q1 FY26.

• Multiple new models planned for launch in the second half of FY25.

• Ramp-up of two greenfield sites expected to stabilize within six to nine months.

• Industry passenger vehicle volumes were flat year-on-year but grew 6% sequentially.

• Management notes an upward trend in copper prices after a reduction during the quarter.