Samvardhana Motherson Q3 profit rises to Rs 879 cr, misses estimates

Indian auto-parts maker Samvardhana Motherson reported a smaller-than-expected rise in third-quarter profit on Friday, hurt by weak global car sales. 

The company's consolidated profit rose to Rs 8.79 billion ($101 million) in the quarter ended December 31 but fell short of analysts' estimate of Rs 9.4 billion rupees, according to data compiled by LSEG. 

Quarterly revenue increased 8 per cent.

 

KEY CONTEXT 

Samvardhana Motherson is India's top auto parts maker by market capitalisation and counts carmakers from Maruti Suzuki to Mercedes-Benz among its customers. 

However, global car sales were down about 1 per cent in the quarter, the company said. It was also hurt by a decline in margins at its top modules and polymers business to 8 per cent from 8.8 per cent. 

 

Together, they offset gains the company had begun to reap from prior acquisitions, analysts said. 

German auto majors Mercedes, Volkswagen, Audi and BMW are among the company's top customers in Europe. 

The company earns about half of its revenue from parts like bumpers and the rest from wiring harnesses, rear view mirrors, sunroofs and door and dashboard panels.