Motherson Sumi Systems Ltd. (MSSL) reported mediocre performance in Q1FY17 amid overall challenging environment and headwinds in global business. It's consolidated Rev/EBIDTA/adj PAT grew by 15.5%/22%/17.1% YoY and 2.1%/-11.6%/-26.1% QoQ to Rs 104.5bn/9.4bn/3.1bn (our estimate of Rs 111.5bn/11.8bn/3.9bn). Its EBIDTA margin expanded 50 bps YoY (down 140 bps QoQ) to 9%, benefitted by lower commodity prices. Revenues at SMR grew by 6.6% YoY and at SMP by 12.9% YoY in Euro terms, is commendable. Its standalone revenue grew by 18.3% YoY (down 2.1% QoQ), on the back of strong PV sales and better traction from high end models. Lower operating margins at SMR pulled down overall EBIDTA margins QoQ in Q1FY17. SMR's EBIDTA margins expanded by 54 bps YoY (down 344 bps QoQ) to 9.1%. SMP's EBIDTA margins rose 79 bps YoY (down 32 bps QoQ) to 6.9%.Karvy maintain their positive view on MSSL and reiterate our BUY recommendation on the stock.