Motherson Sumi falls 9.5%

Motherson Sumi is the top loser on the BSE currently, going down 9.5% to Rs.96.50, not too far from its 52-week low of Rs.91.20.

The market has pounded down the stock price after it posted a disappointing set of Q1FY20 results. Though its consolidated revenue rose 14% (YoY) at Rs.16,557 crore, net profit slipped 25% to Rs.332 crore.

EBITDA for the quarter was at Rs.1188 crore, down 16.5% and margins slipped from 9.8% to 7.2%.

Its net consolidated debt stands at Rs.8375 crore.

Apart from the slowdown in the sector, the steep drop in net profit was partly due to higher depreciation and interest costs attributed under the new Indian Accounting Standard 116.