Samvardhana Motherson International (SAMIL) (formerly Motherson Sumi Systems) reported Q2 revenue of Rs 18,261 crore, up 30 percent YoY. As per the company, this was the highest ever revenue for any quarter. The profit after tax came at Rs 246 crore, compared to Rs 83 crore last year.
The company attributes the strong performance on the back of growth in revenues backed by increasing production volume and premiumisation. It was able to improve profitability due to efficiency programs and part realisation of inflationary cost pass throughs.
Improvement in the supply chain and the opportunity to deleverage in upcoming quarters on the back of normalisation of working capital also contributed to the strong performance.
As of September 30, the company says it has a strong orderbook of 18.2 billion euro (Rs 149,221 crore) compared to 16.1 billion euro (Rs 132,003 crore) as on March 2022. The share of electric vehicles has grown to 37% compared to 27% at SMRP BV level. The total booked business is of 33.9 billion euro (Rs 277,946 crore) at SMRP BV (Samvardhana Motherson Automotive System Group BV) level.
SAMIL says with OEM limiting, halting or fully exiting business activities in Russia, it has taken impairment provisions on the assets as well as other costs related to production suspension amounting to Rs 98 crore and a reversal of deferred tax asset of Rs 14 crore.
Despite the pressure during the second quarter it announced two acquisition including its first in Japan – Ichikoh Industries.
India continues to remain a key market with approximately 24% of SAMIL’s gross revenues and more than 50% of PAT (SAMIL Consolidated) coming from Indian operations.
Vivek Chaand Sehgal, Chairman, Motherson said, “ The strong growth in order book to 18.2 billion euro at SMRP BV is a testimony of our strong relationship with our customers. Full credit to our business teams who have adopted a lot of efficiency programs, the outcome of which is partly visible in the current results.”
