Samvardhana Motherson International (SMI) Q2 FY24 results profit has declined 8.2% year-over-year to ₹20.55 crore. Despite a 28.55% growth in revenue to ₹23,473.79 crore, increased operating expenses and decreased operating income weighed on profitability.
Managing Director and CEO Vivek Chaand Sehgal attributed the decline to “global economic uncertainty and supply chain disruptions.” He added, “We’re taking proactive measures to optimize costs, improve efficiency, and enhance our product offerings.”
SMI’s order book stands at ₹55,400 crore, providing visibility for future growth. However, the company’s debt increased to ₹4,300 crore, which could impact its financial flexibility. The company operates 270 plants across 4 countries, with a diverse product portfolio serving major automotive original equipment manufacturers (OEMs). SMI’s global presence and diversified revenue streams are expected to help mitigate challenges.
In related news, SMI’s joint venture with Marelli has received significant orders from European OEMs. This partnership is expected to contribute to SMI’s revenue growth in the coming quarters. The company’s commitment to sustainability and environmental responsibility remains a key focus area. SMI aims to reduce its carbon footprint through initiatives such as renewable energy adoption and waste reduction.
As the automotive sector navigates global economic uncertainty, Samvardhana Motherson International’s resilience and adaptability will be tested. With its diversified portfolio and global presence, the company is poised to weather challenges and capitalize on emerging opportunities. Here is the expanded news story:
Samvardhana Motherson International’s (SMI) Q2 FY24 results have seen the company’s profit decline 8.2% year-over-year to ₹20.55 crore. Despite a 28.55% growth in revenue to ₹23,473.79 crore, increased operating expenses and decreased operating income weighed on profitability.
Managing Director and CEO Vivek Chaand Sehgal attributed the decline to “global economic uncertainty and supply chain disruptions.” He added, “We’re taking proactive measures to optimize costs, improve efficiency, and enhance our product offerings.”
SMI’s order book stands at ₹55,400 crore, providing visibility for future growth. However, the company’s debt increased to ₹4,300 crore, which could impact its financial flexibility. The company operates 270 plants across 4 countries, with a diverse product portfolio serving major automotive original equipment manufacturers (OEMs). SMI’s global presence and diversified revenue streams are expected to help mitigate challenges.
Samvardhana Motherson International Ltd is a leading automotive component manufacturer based in India, specializing in providing innovative solutions for global automotive customers. With a strong presence in over 40 countries, the company focuses on diverse product offerings, including wiring harnesses, rearview mirrors, and plastics. Its commitment to quality, sustainability, and strategic acquisitions drives its continued growth in the industry.
