The turnaround and successful integration of Europe-based Visiocorp coupled with a pick-up in global auto demand has had its rub-off effect on the Motherson Sumi Systems (MSSL) stock. In addition, robust sales in the domestic auto industry, where it has a 65 per cent and a 48 per cent share in the supply of wiring harness and rear-view mirrors respectively, has also aided top-line growth. For the year ended March 2011, consolidated net sales grew 22 per cent to Rs 8,175 crore while adjusted net profits increased 44 per cent to Rs 390 crore. Consolidated operating margins have also been maintained at around 12 per cent despite raw material cost pressures, thanks to the company's status as a tier-I supplier and the consequent pricing power it enjoys.

While Maruti, Hyundai, Tata Motors continue to be MSSL's top clients, the company has commenced supplies to launches such as the Nissan Micra and Toyota Etios in the last one year. The polymers division of the company also received a leg-up when it began supply of door-trims to the Volkswagen Polo and bumpers to the Tata Aria in 2010. On the international front, MSSL has received orders worth around €800 million for supplies to Europe-based clients, execution of which is expected to begin in July.

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