Motherson Sumi Systems- Concall Highlights:

Consolidated Numbers- Revenue at 9322 crores , a growth of 12% over the same quarter in FY-14 and PAT of 340 crores from 302 crores same quarter last year; QoQ basis PAT increased from 254 crores to 340 crores. For YoY basis, revenue grew by 14% to 34,490 crores for FY15 compared to 30,358 crores last year and PAT rose to 862 crores from 764 crores last year.

Delivered its 5 year target of $5 bn set in 2010 in terms of revenue numbers. 5 year plan to increase revenues from current $5.5 bn to $18 bn with consolidated RoCE target

of 40% and a dividend payout ratio of 40%; a strong order pipeline of about $10-11 bn to help deliver revenue targets for FY16-20.

Derives 85% of its revenues from markets other than India. Currently derives about 9% revenues from US markets, expects this share of revenue to grow to

about 30-33% for its next 5 year plan, Europe to contribute 20-25% , India-China combined at about 25% and rest from other markets; organic to contribute 60-65% and rest through inorganic as a part of FY20 target.

Currently serves about 3-4% of total components used in car, maximum expectation @ 15%. Plans 2000 crores of capex for FY16 of which about 250 crores is planned for India. Another important target by 2020 is what the company terms as “3CX15” i.e no customer, no

country & no component should have >15 % of revenue; for FY-14, Audi & VW commands 20% and 19% respective share in revenue contribution.

It has EBIDTA margin of 6.2% in FY15 compared to 5.5% in FY14. For FY15 it has EPS of 9.8. For FY16, assuming growth rate of 20%, its revenue is expected to be about 41,400 crores and with a PAT margin of 2.5%, it should translate to a Net Profit of 1035 crores translating the EPS to 11.7. At CMP of 470, it is trading at 40.1x FY16E.