MUMBAI – Samvardhana Motherson International on Thursday reported robust numbers for the June quarter, as consolidated net profit surged over four-fold year-on-year (YoY) to Rs 601 crore. Consolidated revenue from operations increased 27% YoY to Rs 22,462.20 crore.
The operating profit, calculated as earnings before interest, taxes, depreciation and amortisation (EBITDA), soared 69% on year to Rs 1,940 crore, driven by operating efficiency, and softening of material and energy prices.
Operating profit margin expanded 210 basis points on year to 8.6%.
“The automotive industry is stabilising with new cost structures and Motherson continues to adapt to the evolving landscape,” said Vivek Chaand Sehgal, Chairman, Motherson.
“We aim to bring innovative solutions, to streamline and solve operational issues. The acquisitions will further increase our value-added content and will provide new growth opportunities for Motherson,” Sehgal added.
Global production volumes, both of commercial and light vehicles, saw double-digit YoY growth in the June quarter. Light vehicles reported a 14% and 15% YoY growth in Europe and North America, respectively.
In China, commercial vehicles reported a high growth of 64% in production volumes and a 20% growth in light vehicles. Capital expenditure for the quarter was Rs 767 crore, compared to Rs 733 crore a quarter ago, and Rs 356 crore a year ago.
The consolidated net debt rose to Rs 8,311 crore as of June end, from Rs 7,474 crore a quarter ago, due to accumulation of engineering inventory for programs yet to start commercial production and payouts for acquisitions during Q1.
The company’s standalone net profit increased more than 62% on year to Rs 138 crore, with revenue rising 23% to Rs 2,017 crore. EBITDA grew 65% YoY to Rs 281 crore, with margins expanding 350 bps to 13.9%.
Shares of the company ended nearly 3% down at Rs 95.80 on the National Stock Exchange.
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