Motherson Sumi: Declining losses at greenfield plants to aid margins

The Motherson Sumi stock has surged 20 per cent over the past week on expectations of revenue recovery and lower losses at its greenfield plants. While consolidated revenue in the June quarter was down 49 per cent over the year-ago levels, the company expects the sales trend to improve and reach pre-Covid levels by the December quarter. With demand improving, capacity utilisation at most of its plants is at 50-75 per cent.  Despite revenues falling  40 per cent on a sequential basis, losses at the company’s greenfield global plants have come down. This was led by fixed.....

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