Motherson Sumi Wiring India Ltd (MSUMI) Q2FY27 Concall Transcript - Sep-2026 Qtr
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Moderator: Ladies and gentlemen, good day and welcome to the Q2 FY '27 results conference call hosted by Motherson Sumi Wiring India Limited. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchtone phone. I now hand the conference over to Mr. V. C. Sehgal, Chairman of the company. Thank you, and over to you, Mr. Sehgal.
V. C. Sehgal (Motherson Sumi Wiring India Ltd): Thank you. Good evening, ladies and gentlemen, and thank you for joining us today. I warmly welcome all you to the Motherson Sumi Wiring India Limited results call for second quarter of FY '27, and I'm thankful for your continued confidence in MSWIL. I'm pleased to announce that the company has delivered a strong performance during this quarter. The revenue growth is supported by higher customer volume, new program launches, and contributions from our greenfield plants. Our investments in new capacities are supporting the increased demand from our customers, and while our teams remain focused on managing cost-related headwinds and improving operational performance. We remain confident about the long-term prospects of the automotive industry in India and will continue to invest in capabilities and capacities in line with our customers' evolving requirements. With that, I would request Vaman to take over and take you through the performance of our company and also introduce the other members in the call. Over to you, Vaman.
Laksh Vaaman Sehgal (Motherson Sumi Wiring India Ltd): Thank you, Papa. Good evening, everyone. We are pleased to report a strong performance this quarter with revenue growing 47% year-on-year and 19% sequentially. EBITDA increased 34% year-on-year and 45% sequentially while profit after tax registered growth of 35% and 54%
Laksh Vaaman Sehgal (Motherson Sumi Wiring India Ltd): and, respectively. Let me take you through the key drivers of our performance. The passenger vehicle industry continued to witness healthy growth with volumes increasing 25% year-on-year and 14% sequentially. We grew ahead of the industry, reflecting the continued trust of our customers and our ability to capture growth opportunities. Vehicle premiumization, which is driving higher content per vehicle, along with our participation in new model launches across both EV and ICE platforms supported our outperformance. EVs accounted for 10% of our revenue during the quarter and 9.3% for the first half of the year. Our three greenfield plants also contributed meaningfully to growth, enabling us to support higher customer volumes. The ramp-ups have progressed well with the plants now operating at an optimum utilization level. Moving to margins, EBITDA margins stood at 9.2% improving point, improving from 7.6% in Q1, through continued focus on operational efficiencies which led to a resilient performance while headwinds from higher copper prices, minimum wage revisions, and other inflationary pressures remain. Copper prices increased by approximately 6% sequentially and 54% year-on-year. As we have highlighted previously, copper is a pass-through item with a typical time lag of about three months for recovery from majority of the customers. We are continuously engaged in constructive discussions with our customers to recover these incremental costs. Now, let's look at the outlook. Passenger vehicles demand remains strong during the quarter. However, the second half of the year will be compared against a higher base following the GST reduction implemented last year. Based on current visibility, we expect the industry to continue registering healthy growth. The combination of healthy industry growth, continued premiumization driving higher content per new vehicle, and new model launches provide a favorable backdrop for us. With that, I now have with me, Pankaj Sir, Anurag, and Gulshan to address your questions. Moderator, please open the floor. Thank you very much. We will now begin the question and answer session.
Moderator: Anyone who wishes to ask a question may press star and one on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Participants, you may press star and one to ask a question. First question is from the line of Kapil Singh from Nomura. Please go ahead.
Kapil Singh (Nomura): Yeah, good evening sir. And congratulations on a very strong performance for the quarter. My first question is just you know on the outlook for the second half. Vaman, you mentioned that of course, growth will be slower, but when we look at absolute terms, most of the OEM's have actually given up fairly strong second-half growth guidance. So in absolute terms, can we expect that the second half can be better than, where we are in the second quarter? And are there some more new programs starting, which could, which could support growth in the second half ahead of the industry?
Laksh Vaaman Sehgal (Motherson Sumi Wiring India Ltd): Yeah. Thanks for that question. Look, third quarter is usually a strong quarter because of, you know, all the festive period that that as, you know, is is already kicked in and but also a precursor before that is the Shraadh period. So you know, a bit of balancing out there. But, of course, we are we're very hopeful. I think, of course, the GST cut provides a very strong boost, and we're hoping that that momentum continues. And like all the OEM's are saying, I think you know, at the same time we were we were very focused to deliver the capacities when the when the growth had kind of slowed down, so we kind of kept focus and made sure that we were ready for this kind of period. So, we are completely ready. I think the the ramp ups like you said have have gone really well and we are really hopeful that this festive period again continues to deliver very strong strong revenue growth. Pankaj sir, Gulshan, if you can if you can add anything to that?
Pankaj Mital (Motherson Sumi Wiring India Ltd): Yeah. Vaman sir as you said, you are right. That it all the momentum continues at the moment. So, so the is the momentum continues, and yes, what he mentioned was that the kind of growth which is so with respect to the last year, because this test after GST cut, the momentum has been continuing and that's continued, so definitely we do believe that there
Pankaj Mital (Motherson Sumi Wiring India Ltd): be a continuous spirit as we move forward. But the range of growth in terms of percentages may not be as wide as what it was with respect to last year.
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