Samvardhana Q1 PAT jumps 66% YoY to Rs 994 cr

Samvardhana Motherson International (SAMIL) reported consolidated net profit of Rs 994.17 crore in Q1 FY25, jumped 65.45% as against Rs 600.87 crore posted in Q1 FY24.

Total revenue from operations increased 28.51% to Rs 28,867.96 crore during the June 2024 quarter as compared with Rs 22,462.18 crore posted in the corresponding quarter last year.

The firm posted strong revenue growth amidst muted industry volume growth and evolving platform mix.

Profit before tax stood at Rs 1,445.20 crore in the quarter ended 30 June 2024, registering a growth of 58.97% YoY.

Total expenses increased 27.61% YoY to Rs 27,601.70 crore in Q1 FY25. Cost of material consumed stood at Rs 15,514.46 crore (up 21.97% YoY), employee benefit expenses was at Rs 7,170.44 crore (up 34.86%) and finance cost was at Rs 444.48 crore (up 75.94% YoY) during the period under review.

EBITDA stood at Rs 2,785 crore in the June 2024 quarter, up 44%% from Rs 1,940 crore reported in Q1 FY24. EBITDA margin improved to 9.6% in Q1 FY25 as compared to 8.6% recorded in the corresponding period last year.

On segmental front, revenue from wiring harness was Rs 8,326.47 crore (up 9% YoY), revenue from modules and polymer products stood at Rs 15,192.79 crore (up 26.84% YoY), vision systems revenue was at Rs 4,996.99 crore (up 8.27% YoY) during the period under review.

Revenue from emerging businesses was Rs 2,591.27 crore (up 42.26% YoY) and integrated assemblies segment revenue was at Rs 2,522.68 crore in the quarter ended June 2024.

The firm stated that greenfield investments are on track. Two facilities have commenced production (from the earlier announced 18 facilities), and one new Greenfield is in Mexico. Capex for the quarter is Rs 1,078 crore.

Leverage ratio maintained at comfortable levels (1.5x) despite increased net debt primarily due to M&A closures.

The company had issued first dual investment grade bonds of $350 million in July in a debt neutral transaction.

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. We remain thankful to our customers for their support and to our global teams for their relentless efforts.

Samvardhana Motherson International is the flagship company of the Samvardhana Motherson group.

The script slipped 3.11% to currently trade at Rs 182.15 on the BSE.

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