Motherson Sumi Wiring India Ltd

Motherson Sumi Wiring India Limited (MSWIL) reported strong Q2 FY'27 results, with revenue growing 47% year-on-year and 19% sequentially, driven by higher customer volumes, new program launches, and contributions from three Greenfield plants operating at optimal utilization. EBITDA increased 34% year-on-year and 45% sequentially, though margins were pressured by rising copper prices (up 6% sequentially, 54% YoY), minimum wage revisions, and inflation. Management noted that copper price pass-throughs typically take 3-6 months to recover, and discussions with customers are ongoing. While passenger vehicle demand remained robust, the second half of the year faces a higher base due to prior GST reductions. Management emphasized continued focus on operational efficiency, cost optimization, and backward integration to mitigate margin pressures. Guidance for FY'28 CAPEX was not quantified, but expansion plans are aligned with customer growth. The company highlighted long-term confidence in the automotive industry and its ability to adapt to evolving customer needs, including EV and ICE platform participation.

The document emphasizes strong revenue and EBITDA growth, successful Greenfield plant ramp-ups, and confidence in long-term industry prospects despite margin pressures.