Auto component major, Samvardhan Motherson clocked robust Q1FY25 numbers. Its Profit After Tax for Q1FY25 came in at Rs 995 Crores in Q1FY25, up 65% from Rs 601 Crores in Q1FY24.. Q1 revenue went up 29 per cent YoY to Rs 28,868 Crores from Rs 22,462 Crores in Q1FY24. The EBITDA rose 44 per cent. Diversificantion and growth in non-auto business helped offset a rather flat quarter for the automotive business.
The improvement in profitability was primarily on the back of scale benefits and margin accretive inorganic expansion or M&As. Strong revenue growth amidst muted industry volume growth and evolving platform mix also bolstered Q1 performance. The company’s Greenfield investments are on track. Two facilities have commenced production. This is part of the 18 facilities that the company had planned for and announced earlier and one new Greenfield is in Mexico. Moreover, the diversified business model is expected scale-up of non-auto businesses.
Speaking on the company’s Q1 performance, Vivek Chaand Sehgal, Chairman, Motherson said, “The company has delivered robust quarterly performance despite flat industry volumes. All announced acquisitions have been successfully integrated and have started to contribute positively; their full potential will be realised in the coming months. Financial prudence helped keep the Leverage ratio to 1.5x. We continue to invest in our auto and non-auto businesses; while 2 of our facilities have commenced production, 17 of our Greenfields across emerging markets for auto and non-auto businesses are at different stages of completion.”
Samvardhan Motherson is an international manufacturer of automotive components based in India. It manufactures wiring harnesses,plastic components, and rearview mirrors for passenger cars. It was established in 1986 as a joint venture with the Sumitomo group of Japan.
Samvardhan Motherson saw a 10.36 percent decline in the share price last month. However, it increased 58.44 percent in the previous six months.
