Motherson Sumi registers increase in net profit by 43 per cent in net profit in Q3

After gaining 43 percent increase in the net profit for the third quarter Auto parts maker Motherson has plans to expand the capacity. There are plans to set up units in Brazil, Thailand and South Africa in 2011- 2012 at the expense of 5 billion.

In the last quarter that ended on December 31, 2010 the company has reportedly made a net profit of Rs 106.37 crore which is more than the profit made in same period in the previous year. The total income drawn in the third quarter of 2011 has also jumped from Rs 1,814.81 from last year to 2,152.57 this year. Therefore there is an increase in the total income by 18.61 percent from last year.

According to the Chief Operating Officer of Motherson Sumi Systems (MSSL) Pankaj Mital, the company has been able to achieve the remarkable profit due to the robust growth in the domestic market. Besides that another factor which contributed towards increasing the net profit is the better utilisation of capacity and control in costs.

The Chief Financial officer of MSSL G N Gauba said that the company is palnning to invest Rs 500 crore in 2011-2012 for expanding the current capacities of the company. Along with that the company also plans to set up new facilities across the globe. He further added that the amount will be equally divided between the Indian and overseas market. MSSL has already began the construction of its greenfeild facility in Brazil which will be operational in next 6 months.

MSSL is a global leading manufacturer of rear-view mirrors, the company had plans to set up 4 facilities at Bangalore, Chennai, Pune and Haldawani (Uttrakhand) earlier to supply componenets to manufacturers like Toyota, Tata Motors, Nissan and Ashok Leyland. MSSL is a joint venture between Samvardhana Motherson Group and Japan-based Sumitomo Wiring Systems. The company has a total of 90 facilities in around 22 countries.

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