This article first appeared on GuruFocus .
Release Date: November 05, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Motherson Sumi Wiring India Ltd ( BOM:543498 ) reported its best-ever quarterly performance with revenues of 2,762 crores.
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The company achieved a 12% year-on-year growth in revenue, significantly surpassing industry benchmarks.
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New greenfield projects contributed approximately 190 crores to the quarterly revenue.
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The company is experiencing strong demand conditions and has launched new products in collaboration with OEMs.
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The ramp-up of greenfield sites is progressing well, with utilization expected to reach optimal levels of 70-80% in the near future.
Negative Points
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Greenfield sites are currently operating at a loss due to low utilization rates, impacting overall profitability.
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Copper prices have increased by 5% quarter-on-quarter, contributing to higher raw material costs.
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The company faces challenges in achieving optimal utilization levels at greenfield sites, which affects profitability.
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There is uncertainty regarding the impact of the increasing share of EVs on long-term margins.
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Staff costs are expected to rise as more manpower is required for ramping up production at greenfield sites.
Q & A Highlights
Q: Utilization of greenfield sites has improved to 36%. How do you see this progressing by Q4 FY26 or H1 FY27? Will it reach optimal levels of 70-80%? A: Utilization depends on customer volumes. If projected volumes are met, utilization will increase. One greenfield site has ramped up, while others are in progress. Optimal utilization is expected when volumes reach 70-80%.
Q: At what level of utilization will greenfield sites become profitable? A: Profitability is expected when utilization reaches 70-80%. It depends on volume ramp-up, which is currently in progress.
Q: Copper prices have increased by 5% quarter-on-quarter. Is this the main reason for the increase in raw material costs? A: Copper prices have increased, impacting costs. The increase is reflected in both existing and greenfield units. The cost will be absorbed as volumes ramp up.
Q: Greenfield losses seem to have increased as revenues ramped up. Can you explain this trend? A: Losses have not increased; they have improved as volumes ramp up. Previous quarter losses were impacted by certain recoveries. The situation is improving quarter-on-quarter.
Q: With the increase in EV share, do you foresee any impact on long-term margins? A: The company focuses on return on capital employed rather than specific margins. The mix of products and projects influences margins, and the company continuously strives to improve efficiencies.
Q: Are employee additions for greenfield plans complete, and will staff costs stabilize? A: As volumes grow, more shop floor employees will be required. Staff costs will increase with volume growth, but efficiency will also improve.
Q: With the increase in EV-related volumes, what are the efforts on localizing the supply chain for high-voltage harnesses? A: The contribution to the EV market will grow with greenfield ramp-up. The company supplies to various vehicle types, and localization efforts are ongoing.
Q: What is the CapEx guidance for this year and next? A: CapEx for this year is budgeted at 210 crores. Next year's CapEx will depend on customer requirements and will be finalized by the end of the year.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
