Samvardhana Motherson Ltd. is planning to invest up to Rs 5,000 crore in capital expenditure for FY25, following robust growth in net profit and revenue during the first quarter. Chief Financial Officer Kunal Malani noted that this figure might be adjusted due to potential new business acquisitions. The company is focused on reducing its debt and aims to bring its leverage ratio down to 1 times.
Malani also highlighted an improvement in the company’s margins during the June quarter of FY25, which reached 9.6%, a 100 basis points increase from 8.6% in the previous year. “Last year’s full-year margin was 9.3%, and we have already achieved 9.6% in the first quarter. The total revenue from mergers and acquisitions integrated this quarter is slightly above Rs 6,000 crore,” Malani said.
The automotive components maker reported a consolidated net profit of Rs 1,097.18 crore in Q1, marking a 69% year-on-year increase. Total revenue from operations grew by 28.5% to Rs 28,867.96 crore. According to Malani, demand is strong in developing economies, while developed economies are experiencing a slowdown, mainly due to uncertainty surrounding powertrains. However, he emphasized that Samvardhana Motherson is “powertrain agnostic” and is prepared to support all types of vehicles.
Samvardhana Motherson is a leading global supplier of automotive components, known for its extensive range of products and services in the automotive industry. The company specializes in manufacturing diverse components such as wiring harnesses, rearview mirrors, interior and exterior modules, and precision metals.
With a strong focus on innovation and quality, Samvardhana Motherson has built a robust presence in international markets, serving major automotive manufacturers across the globe. The company is committed to sustainable growth and continuous improvement, leveraging strategic acquisitions and partnerships to expand its capabilities and market reach. Through its customer-centric approach and emphasis on technological advancements, Samvardhana Motherson continues to be a key player in the global automotive supply chain.
