Samvardhana Motherson International shares rally on Q1 show: profits up 70%

Shares of Samvardhana Motherson International Ltd (SAMIL) surged up to 4.42 per cent at Rs 188.75 a piece on the BSE in Wednesday’s intraday trade. The stock price jumped after the company on Tuesday reported its April-June quarter of financial year 2024-25 (Q1FY25).

Auto components major SAMIL reported a 69.3 per cent increase in consolidated net profit, reaching Rs 1,097.18 crore for the first quarter ended June 30, 2024, compared to Rs 648.12 crore in the same quarter last fiscal year. 

Earnings before interest, taxes, depreciation, and amortisation (Ebitda) also saw a surge of 44 per cent, standing at Rs 2,785 crore versus Rs 1,940  crore in the previous year

Total revenue from operations for the quarter was Rs 28,867.96 crore, reflecting a 28.7 per cent increase from Rs 22,462.18 crore in the year-ago period. 

Total expenses for the first quarter stood at Rs 27,601.7 crore, up 27.6 per cent from Rs 21,629.09 crore in the same period a year earlier.

“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,” said Vivek Chaand Sehgal, Chairman, Motherson. 

SAMIL has a total market capitalisation of Rs 1.25 trillion. The company is presently trading at a price to earnings multiple of 109.02 times, while trading at an earning per share (EPS) of Rs 1.66.

The share price of the company has zoomed 75.3 per cent year to date, while it has gained 92.3 per cent in the last one year

At 11:48 AM; the stock price of the company was trading 2.41 per cent higher at Rs 188.75 per share on the BSE. By comparison the BSE Sensex surged by 0.12 per cent at 79,052 levels.