More Stories

Informist, Friday, Feb. 14, 2025

 

Please click here to read all liners published on this story

--Samvardhana Motherson: Two greenfield units operationalised in Oct-Dec
--Samvardhana Motherson:6 greenfield units likely to come onstream in 2 qtrs
--Samvardhana Motherson:Cut FY25 capex guidance to INR 45 bln from INR 50 bln
--Samvardhana Motherson: Saw fall in CV volumes across key geographies
--Samvardhana Motherson: Major auto mkts like Europe, North America declined
--Samvardhana Motherson: Cut capex guidance to INR 45 bln from INR 50 bln
--Samvardhana Motherson spent INR 8.91 bln on capex in Oct-Dec
--Samvardhana Motherson Oct-Dec vision system sales INR 47 bln, dn 1.6% YoY
--Samvardhana Motherson Oct-Dec wiring harness sales INR 78.3 bln, dn 1% YoY
--Samvardhana Motherson Oct-Dec modules, polymer pdt sales up 14.6% on yr
--Samvardhana Motherson Oct-Dec consol EBITDA INR 27.76 bln, up 13% on year
--Samvardhana Motherson Oct-Dec modules, polymer pdt sales INR 146.14 bln
--Samvardhana Motherson Apr-Dec consol sales INR 843.5 bln vs INR 716.3 bln
--Samvardhana Motherson Apr-Dec consol PAT INR 27.53 bln vs INR 13.44 bln
--Samvardhana Motherson Oct-Dec consol sales INR 276.7 bln vs INR 256.4 bln
--Samvardhana Motherson Oct-Dec consol PAT INR 8.79 bln vs INR 5.42 bln
--Analysts saw Samvardhana Motherson Oct-Dec consol net profit INR 8.46 bln
--Samvardhana Motherson Oct-Dec consol net profit INR 8.79 bln
 

 

By Sunil Raghu

 

AHMEDABAD – Samvardhana Motherson International Ltd. on Friday reported strong year-on-year growth in net profit for the December quarter, beating the analysts' estimates by a decent margin. The on-year growth in the key earnings metric came on the back of a diversified business model, lower finance costs, inventory gain and control of capital expenditure.

 

The consolidated net profit of the company, which manufactures automotive components, jumped 62% on year to INR 8.79 billion in Oct-Dec. Brokerages had pegged the bottom line at INR 8.46 billion for the quarter. 

 

The company's total consolidated revenue rose 7.9% on year to INR 276.66 billion. Analysts had estimated the company's top line at INR 290.50 billion.

 

The company, which has a presence in 44 countries, supplies components to popular brands such as Audi, Mercedes-Benz, BMW and Ford. 

 

However, net profit and revenue were lower on a sequential basis. The net profit declined 0.1% on quarter, while revenue fell 0.5%.

 

The company's consolidated earnings before interest, tax, depreciation, and amortisation was INR 27.76 billion, up 13% on year. Brokerages had pegged it at INR 26.68 billion. 

 

The December quarter saw a de-growth in commercial vehicle volumes across key geographies. The passenger vehicle volumes too fell 1% on year and declined in major automotive markets such as Europe and North America. The automotive production volumes too were under pressure, despite improvement in penetration of electric vehicles and hybrids across geographies.

 

The modules and polymer products business, with revenue of INR 146.13 billion, was up 14.6% on year and contributed the most to the company's top line in Oct-Dec. On the other hand, its vision system sales for the December quarter were at INR 47.3 billion, down 1.6% on-year. The wiring harness sales were at INR 78.3 billion, down 1% on-year on demand-related challenges in commercial vehicles industry in Europe and North America.

 

"Our performance demonstrates the resilience and adaptability of our diversified business model. Our engineering, manufacturing and assembly capabilities will help us navigate challenges while delivering future growth," Chairman Vivek Chaand Sehgal said in a release.

 

During the quarter, the company operationalised its first plant for the consumer electronics business, which will further strengthen the non-automotive businesses. "We remain focused on maintaining a strong balance sheet with control on capex and leverage ratio," he said.

 

Two other plants for the consumer electronics business are on track and will be operational in 2025-26 (Apr-Mar) or FY27, the company said in its investor presentation.

 

On Friday, shares of Samvardhana Motherson ended 2.8% lower at INR 126.21 on the National Stock Exchange, despite the key metrics being above expectations, as the broader market was weak.

 

The company's total expenditure in the December quarter rose 6.6% on year to INR 265.59 billion, led by costs relating to raw materials, employee benefits, depreciation and other expenses. The cost of raw materials grew 8.7% on year to INR 154.50 billion, followed by employee-related costs, which increased 17.3% on year to INR 71.17 billion. Other expenses rose 5.6% on year to INR 32.29 billion.

 

The finance costs of the company fell 24.9% on year to INR 4.66 billion. The company had an inventory gain of INR 10.30 billion, up from INR 1.19 billion a year ago. The tax outgo for the quarter was INR 3.37 billion, up 55.0% compared to INR 2.18 billion a year ago.

 

The company's net profit in Apr-Dec more than doubled to INR 27.53 billion, while the revenue from operations rose 17.8% to INR 843.46 billion. The company incurred a capital expenditure of INR 29.15 billion in the first nine months of the year and has recalibrated its strategy by reducing the capex guidance for the full year by INR 5 billion to INR 45 billion.

 

The company's net debt declined to INR 95.33 billion at the end of the quarter from INR 104.96 billion a quarter ago. The company's cash and bank balance fell to INR 68.21 billion at the end of December from INR 123.23 billion a quarter ago.  End

 

Edited by Saji George Titus

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

 

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2025. All rights reserved.