Samvardhana Motherson Q1 Results: Wiring Harness, Emerging biz lead 17% revenue growth, margin expands

Samvardhana Motherson Q1 Results: Wiring Harness, Emerging biz lead 17% revenue growth, margin expands


Shares of auto components manufacturer Samvardhana Motherson Ltd. recovered from the lows of the day to trade with gains on Thursday, August 6, after announcing its June quarter results.

For the June quarter, Samvardhana Motherson’s revenue grew by 17% from last year to ₹35,243 crore. The figure was higher than the CNBC-TV18 poll of ₹33,777 crore.

Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter grew by 26% to ₹3,096 crore from ₹2,459 crore last year. The figure was in-line with the CNBC-TV18 poll estimate of ₹3,057 crore.

EBITDA margin for the quarter expanded by 80 basis points from last year to 8.8%. However, the figure was 30 basis points lower than the CNBC-TV18 poll estimate of 9.1%.

Samvardhana Motherson’s Wiring harness business saw revenue of ₹11,280 crore during the quarter, higher than the ₹864 crore it reported during the same quarter last year. The segment EBIT during the quarter stood at ₹1,253 crore.

The company’s Modules and Polymer Products business saw revenue of ₹16,694 crore from ₹15,008 crore last year, while the vision systems business grew to ₹5,654 crore from ₹5,137 crore last year.

Revenue for the integrated assemblies business stood at ₹2,949 crore from ₹2,818 crore, while the Emerging business revenue grew to ₹4,795 crore from ₹3,701 crore last year.

In its post-earnings release, Samvardhana Motherson stated that the slowdown in the Chinese markets weighed on the global light vehicles industry but South Asia remained a bright spot.

The company is anticipating the planned European OEM launches to support industry growth going forward, and also sees a favourable outlook for the North American CV market as the recovery there has managed to sustain.

Net debt at the end of the June quarter stood at ₹9,757 crore compared to ₹9,811 crore in March, and ₹11,228 crore during the same quarter last year.

Shares of Samvardhana Motherson are trading between gains and losses after the results announcement. Currently trading 1% higher at ₹155.79. The stock is up 28% so far this year.



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