Now Reading: Samvardhana Motherson Q1 profit doubles to Rs 1,032 crore
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Samvardhana Motherson Q1 profit doubles to Rs 1,032 crore
Auto components maker Samvardhana Motherson International reported a 102% jump in consolidated net profit to Rs 1,032 crore for the June quarter, against Rs 512 crore a year ago. Revenue rose 17%…
The Story in Brief
Auto components maker Samvardhana Motherson International reported a 102% jump in consolidated net profit to Rs 1,032 crore for the June quarter, against Rs 512 crore a year ago. Revenue rose 17% to a record Rs 35,244 crore. EBITDA climbed to Rs 2,950-3,104 crore (sources differ on exact figure), with margin improving to 8.4-8.8%. The board recommended a final dividend of 25 paise per share.
The company operationalised three new plants during the quarter and has 13 more under construction. It incurred capital expenditure of Rs 1,614 crore, in line with its annual guidance of Rs 6,000 crore (+/-10%). It also announced the acquisition of Shenzhen Autocruis to strengthen technology capabilities. Chairman Vivek Chaand Sehgal cited disciplined execution and cost optimisation for the resilient profitability.
The Indian Opinion
While the profit doubling grabs headlines, the real story is the steady margin improvement of nearly one percentage point despite input cost inflation, a sign that Motherson's D.E.M.A.L. model is working. However, the divergence in EBITDA figures between media reports shows how easily investors can be misled by a few crore. The key test will be whether the company can sustain this margin as it brings 13 new plants online and integrates the Shenzhen acquisition. Watch for the next quarter's capex spend and debt levels.
Sources (2): livemint.com, businesstoday.in
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
