Shares of Motherson Sumi Systems failed to register profits. Know why

Shares of Motherson Sumi Systems Ltd., India's top auto ancillary maker, fell on profit booking after the company's strong earnings fell below street's stratospheric forecasts.

Motherson said its first quarter Net Profit jumped 62 percent to 266 crore rupees compared with 163.7 crore rupees in the same quarter a year ago. Sales during April-June rose 11.8 percent to 9,384 crore rupees from 8,391.5 crore rupees in the year ago period. The street was expecting a PAT of 306 crore rupees on sales of 9,534 crores. Motherson missed both estimates.

Motherson fell 20.25 rupees, or 5.2 percent, to 370.90 rupees, snapping a 4-day rally to a record high on the National Stock Exchange, where 60 lakh shares were traded by 1:45 pm compared with the 5-day average of 26 lakh shares.

Motherson's market capitalisation has jumped 53 percent in the past one year to 50,450 crore rupees as investors bought into a globally competitive auto ancillary giant headquartered in India.

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