Home / Business / Money / Motherson sees no major hit from client Volkswagen’s fiasco

Motherson sees no major hit from client Volkswagen’s fiasco

Terming the market’s fears that the Volkswagen fiasco may have a major impact on Motherson Sumi as “over-reaction”, the company’s Chairman Vivek Chaand Sehgal said the group does not see any major impact.

Motherson sees no major hit from client Volkswagens fiasco

Terming the market’s fears that the Volkswagen fiasco may have a major impact on Motherson Sumi as “over-reaction”, the company’s Chairman Vivek Chaand Sehgal said the group does not see any major impact.

Volkswagen has admitted to cheating to installing a cheating device in its diesel cars in order to clear stringent environmental tests in the US, in a case where it faces penalties of up to USD 18 billion.

But chairman Sehgal of Motherson, which is a major client of the Volkswagen Group, told CNBC-TV18 the company hardly has any exposure to the company’s diesel vehicles and added that the German carmaker was strong enough to withstand the financial impact of the development.

Motherson shares have fallen about 30 percent in the past three months, including a precipitous decline after the news broke out.

Sehgal, chief of India’s largest auto ancillary group, also allayed analyst concerns over its exposure to leading Indian carmaker Maruti Suzuki — where it has enjoyed near dominance — amid reports Maruti is looking to diversify its vendor base.

But he said such a move will not impact Motherson’s revenues as the company itself has been taking steps to reduce its revenue dependence on any one client.

More to come.

Motherson Sumi stock price

On September 22, 2015, at 13:49 hrs Motherson Sumi Systems was quoting at Rs 243.20, down Rs 18.95, or 7.23 percent. The 52-week high of the share was Rs 395.85 and the 52-week low was Rs 229.68.


The company’s trailing 12-month (TTM) EPS was at Rs 4.26 per share as per the quarter ended June 2015. The stock’s price-to-earnings (P/E) ratio was 57.09. The latest book value of the company is Rs 15.82 per share. At current value, the price-to-book value of the company is 15.37.

Leave a Reply

Scroll To Top