Motherson Sumi: Declining losses at greenfield plants to aid margins

While losses at the greenfield facilities have come down to 19 million euros from 175 million euros in FY20, analysts expect them to turn positive at the operating profit level by the end of FY21

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Motherson Sumi | Motherson Sumi stock | Market news

Ram Prasad Sahu Last Updated at August 13, 2020 19:34 IST

The Motherson Sumi stock has surged 20 per cent over the last week on expectations of revenue recovery and lower losses at its greenfield plants. While consolidated revenue in the quarter was down 49 per cent over the year ago levels, the company expects the sales trend to improve and reach pre-Covid-19 levels by the December quarter. With demand improving, capacity utilisation at most of its plants is at 50-75 per cent.

Despite weak revenues, losses at the company’s greenfield global plants have come down. This was led by fixed cost optimisation and productivity gains. Analysts ...

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First Published: Thu, August 13 2020. 19:31 IST

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Motherson Sumi: Declining losses at greenfield plants to aid margins

While losses at the greenfield facilities have come down to 19 million euros from 175 million euros in FY20, analysts expect them to turn positive at the operating profit level by the end of FY21

TO READ THE FULL STORY, SUBSCRIBE NOW NOW AT JUST Rs

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