Motherson WiringQ4 FY24

Motherson Wiring Q4 FY24 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹33.5P/E: 36.2Market Cap: ₹22.7K CrSector: Auto Components

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

N/A

Order

N/A

Capex

Yes

1 of 3 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

Category 3
  • The company anticipates continued positive growth driven by OEMs expanding production capacities and new model launches, particularly in the small car segment.
  • Industry volume growth for FY '25 is expected to slow to mid-single digits, aligning with broader market trends.
  • Major customers like Maruti Suzuki plan to ramp up production significantly over the next 6-7 years, from 2.3 million to 4 million units.
  • Growth is supported by trends in premiumization and SUV demand which increase the value of wiring harnesses.
  • Motherson expects to benefit from vehicle feature enhancements, as more features translate into higher wiring harness content.
  • Two new manufacturing facilities are expected to add approximately 10%-15% capacity, coming online in FY '24-25.
  • Overall, the company remains optimistic about sustained growth driven by market expansion and evolving customer needs.

See what Motherson Wiring management said on margin guidance — free account, 30 seconds.

Fundraise plans

  • There is no mention of any current or future fundraising through debt or equity in the transcript.
  • The company has outlined a CAPEX guidance of approximately Rs. 200 crores for FY 2025 but has not indicated plans to raise funds via debt or equity to finance this.
  • The focus is on organic growth, capacity expansion with two new facilities coming up, and improving ROCE.
  • No discussions or references were made regarding issuing new shares or taking on new debt during the call.

See what Motherson Wiring management said on order book — free account, 30 seconds.

Capex plans

Yes
  • The company has guided for a capital expenditure (CAPEX) of approximately Rs. 200 crores for the financial year 2024-25.
  • This CAPEX includes investments for growth, expansion, productivity and quality improvement, as well as maintenance and replacement of assets that have reached the end of their useful life.
  • Currently, Motherson Sumi Wiring India Limited has 26 plants, with two additional plants under development.
  • These two new facilities are expected to become operational in Q1 of the financial year, with volume ramp-up anticipated in the middle or later quarters.
  • The new facilities will increase the current capacity by roughly 10%-15%.
  • The company focuses on aligning its capacity expansion with the increasing production plans of OEM customers, including those launching new vehicle models.

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How does Motherson Wiring rank vs peers in Auto Components?

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