Samvardhana Motherson International, a major player in the auto components industry, reported a 65% year-on-year increase in consolidated net profit for the first quarter of FY25, reaching ₹994 crore. This marks a significant rise from the ₹601 crore profit recorded in the same quarter last fiscal year. The profit figures aligned closely with market expectations of ₹985 crore, driven by scale benefits and margin-accretive mergers and acquisitions.
The company’s revenue for the quarter surged by 28.5% year-on-year to ₹28,868 crore, surpassing the estimated ₹28,460 crore. Despite the muted industry growth and shifting platform mix, Samvardhana Motherson managed to outperform revenue projections.
Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) rose by 44% year-on-year to ₹2,775.3 crore, though this was slightly below the anticipated ₹2,830 crore. The EBITDA margin improved by 100 basis points to 9.6%, up from 8.6% in the previous year, but it still fell short of the expected 10%.
The company’s gross debt increased to ₹20,114 crore at the end of the June quarter, up from ₹17,351 crore at the close of the March quarter and ₹12,546 crore a year earlier. Net debt also rose to ₹13,370 crore, compared to ₹10,372 crore in the March quarter and ₹8,311 crore at the same time last year.
The rise in debt was attributed to mergers and acquisitions finalized during the quarter, as well as an expansion in working capital. This increase in working capital was driven by inventory build-up due to the Red Sea crisis and fluctuations in customer production schedules, which the company expects to stabilize by the September quarter.
