Samvardhana Motherson Q2 Results: Profit falls 18% YoY to Rs 202 cr; revenue up 28%
The company said it is investing and setting up ten new facilities in India to support customers’ growth in auto and non-auto business
By Akash Podishetti, ETMarkets.com |
ETMarkets.com
Leading automotive player Samvardhana Motherson posted an 18% decline in its consolidated net profit at Rs 202 crore for the quarter ended September. It was Rs 246 crore a year ago.
Revenue from operations jumped 28% year-on-year (YoY) to Rs 23,474 crore on the back of a healthy booked business of over $77 billion.
Profit for the quarter, excluding one-time provision for footprint rationalisation, was at Rs 451 crore.
The company's EBITDA or operating profit rose 31% year-on-year to Rs 1,887 crore in the July-September period as against Rs 1444 crore in the last year period.
Meanwhile, margins improved marginally to 8% in the September quarter.
"This performance is a testament to our team's dedication and hard work on the back of customer support in navigating uncertain business environments. We are cautious yet confident in our ability to adapt and navigate through these challenges. The integration of acquired entities is at its initial phase and moving in the right direction towards unlocking its full value in the coming times," said Vivek Chaand Sehgal, Chairman, Motherson.
In the automotive booked business, the electric vehicles share is about 22%.
The company said it is investing and setting up ten new facilities in India to support customers’ growth in auto and non-auto business
"The lower production on account of annual plant shutdowns at OEMs due to summer holiday in Europe, impact compounded by local disruptions in Europe and America," it said in a statement.
Samvardhana closed four acquisitions (SAS, Saddles, Rollon and Ichikoh) during the second quarter.
The net debt to EBITDA ratio is at 1.9x, well below the stated financial policy of 2.5x. This is despite paying approximately Rs 3,800 crore for the foreclosed acquisitions.
On Thursday, the company's shares closed 2.85% lower at Rs 90.20 on NSE.
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Revenue from operations jumped 28% year-on-year (YoY) to Rs 23,474 crore on the back of a healthy booked business of over $77 billion.
Profit for the quarter, excluding one-time provision for footprint rationalisation, was at Rs 451 crore.
The company's EBITDA or operating profit rose 31% year-on-year to Rs 1,887 crore in the July-September period as against Rs 1444 crore in the last year period.
Meanwhile, margins improved marginally to 8% in the September quarter.
"This performance is a testament to our team's dedication and hard work on the back of customer support in navigating uncertain business environments. We are cautious yet confident in our ability to adapt and navigate through these challenges. The integration of acquired entities is at its initial phase and moving in the right direction towards unlocking its full value in the coming times," said Vivek Chaand Sehgal, Chairman, Motherson.
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In the automotive booked business, the electric vehicles share is about 22%.
The company said it is investing and setting up ten new facilities in India to support customers’ growth in auto and non-auto business
"The lower production on account of annual plant shutdowns at OEMs due to summer holiday in Europe, impact compounded by local disruptions in Europe and America," it said in a statement.
Samvardhana closed four acquisitions (SAS, Saddles, Rollon and Ichikoh) during the second quarter.
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The net debt to EBITDA ratio is at 1.9x, well below the stated financial policy of 2.5x. This is despite paying approximately Rs 3,800 crore for the foreclosed acquisitions.
On Thursday, the company's shares closed 2.85% lower at Rs 90.20 on NSE.
ADVERTISEMENT
(You can now subscribe to our ETMarkets WhatsApp channel)
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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