Motherson Sumi Wiring India Limited (MSWIL) today announced its financial results for the fiscal 2022-23 third quarter, which ended on 31st December 2022.

Commenting on the results, Mr. Vivek Chaand Sehgal, Chairman, Motherson Sumi Wiring India Ltd. said, “Indian automotive industry continues to face supply chain issues. Our teams are working closely with the customers to mitigate the effects of these challenges. We believe this quarter is work in progress given products for 11 new models are already developed by the company, with required capacities in place(including three new plants). We are optimistic that in upcoming months with the stable/ growing business environment, added capacities will have a higher utilisation. We are thankful to our customers for their continued support."

Key Highlights

• FY 22-23 is first reporting financial year for MSWIL as independent public listed company (Group reorganisation implemented in Jan–March 2022 quarter with approval of Hon’ble NCLT, Mumbai)
• During FY 22-23, MSWIL expanded capacity (capex for Q3FY23 is Rs 61 crores; 9M FY23 is Rs 147 crores) in line with customers forecasted requirements as well as orders for new models/ programs awarded to company.
• Added 3 new facilities (26 now, compared to 23 earlier) and enhanced overall capacities by over 25% in terms of manhours compared to same period previous financial year
• The company developed products for 11 new /full model change and 04 facelift model in the passenger vehicle segment during first nine months and is currently working on 06 new / full model changes which will be launched in next 3-6 months. These will contribute nearly 40% of the total business of the company, requiring the company to hire and train additional manpower (approx. 7000 people) upfront for successful launch of these programs.

Performance for the quarter includes impact of

• Higher operating costs due to lower production at OEMs on QoQ basis, leading to lower utilisation of added capacities
• Stablisation/ramp up phase of new models is in progress
• Inflationary pressures specially manpower inflation and strengthening of Japanese Yen

Teams performed well despite challenges like lower topline / higher costs and have improved sequential EBITDA. Actions to mitigate challenges are in place:

• Smooth ramp up at Bengaluru and Chennai facilities are in progress, expected to have optimum utilisation by Q1FY24 on the back of stable demand from OEMs
• Ongoing discussions with customers moving in positive direction for actualisation / realignment of cost

Financial Performance