Samvardhana Motherson International Ltd (SAMIL), a leading player in the auto components industry, reported a remarkable increase in its consolidated net profit for the fourth quarter ending March 31. The company’s net profit more than doubled to ₹1,444 crore, compared to ₹699 crore in the same period last year.
Revenue from operations for the quarter rose by 20% to ₹27,058 crore, up from ₹22,517 crore in the corresponding quarter of the previous year. The company’s EBITDA for the reviewed quarter stood at ₹2,934 crore, reflecting a year-on-year growth of 42.4%. The EBITDA margin improved to 10.8% from 9.2% in the year-ago period.
In light of these robust results, the company has recommended a dividend of ₹0.80 per equity share with a face value of Re 1 each for the financial year 2024. This dividend is subject to shareholder approval at the upcoming Annual General Meeting (AGM).
Samvardhana Motherson also reported a favorable leverage ratio of 1.4 times, better than the previously guided less than 1.6 times. The company’s gross debt decreased to ₹17,351 crore from ₹19,186 crore in the previous quarter, reflecting its healthy financial management and reduced leverage.
“Our automotive booked business of over $83.9 billion provides strong revenue visibility,” said Vivek Chaand Sehgal, Chairman of Motherson. “We also foresee good traction from our non-automotive businesses, such as aerospace, consumer electronics, and health and medical. To fully utilize our manufacturing capabilities, we are setting up new facilities across emerging markets.”
The board of Samvardhana Motherson has also approved raising up to ₹5,000 crore through Non-Convertible Debentures (NCDs) on a private placement basis, aiming to strengthen its financial position further.
On Wednesday, Samvardhana Motherson shares were trading 2.85% higher at ₹146.05 on the NSE. The stock has experienced nearly a 40% increase so far this year, reflecting strong investor confidence and the company’s robust performance.
With these impressive results, Samvardhana Motherson is well-positioned to continue its growth trajectory, leveraging its diverse portfolio and expanding its presence in emerging markets.
