Schedule a Call Back
Samvardhana Motherson reports Q1 results; rise in profit, loss in share price
Industry News- Aug 14,24
Following the results, Samvardhana Motherson's shares fell by as much as 4.5%, closing 2.8% lower at Rs 182.9. Despite this decline, the stock has gained 70% in 2024.
The company reported a 65.4% increase in net profit to Rs 9.94 billion, aligning with the anticipated Rs 9.85 billion. This boost in profitability was attributed to scale benefits and margin-enhancing mergers and acquisitions (M&As).
Revenue for the quarter rose by 28.5% year-over-year to Rs 288.68 billion, exceeding the estimated Rs 284.6 billion. This revenue growth occurred despite muted industry expansion and changes in platform mix, as noted in the investor presentation.
Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) increased by 44% year-on-year to Rs 27.75 billion , though it fell short of the expected Rs 28.30 billion . The EBITDA margin improved by 100 basis points to 9.6% from 8.6% last year but was below the anticipated 10%.
The company's gross debt at the end of the June quarter reached Rs 201.14 billion , up from Rs 173.51 billion in March and Rs 125.46 billion a year earlier. Net debt also increased to Rs 13,370 billion from Rs 103.72 billion in March and Rs 83.11 billion last year.
The rise in debt by Rs 17.50 billion was primarily due to M&A closures during the quarter and increased working capital needs, driven by the Red Sea crisis and fluctuations in customer production schedules. The company expects these issues to normalise by the September quarter.
Following the results, Samvardhana Motherson's shares fell by as much as 4.5%, closing 2.8% lower at Rs 182.9. Despite this decline, the stock has gained 70% in 2024.
(CNBCTV18)
Related Stories
Auto & Auto Components
CSI launches India operations to decarbonize India's auto sector by 2070
The report highlights that OEMs will need to invest approximately $ 323 billion to develop electric vehicles (EVs) alongside existing technologies.
Read moreAuto & Auto Components
L&T Semiconductor Technologies to secure 6 clients by September-end
The contracts are expected to total $150 million annually.
Read moreAuto & Auto Components
Samvardhana Motherson reports Q1 results; rise in profit, loss in share price
Following the results, Samvardhana Motherson's shares fell by as much as 4.5%, closing 2.8% lower at Rs 182.9. Despite this decline, the stock has gained 70% in 2024.
Read moreRelated Products
Tata Motors unveils facilities for development of Hydrogen propulsion tech
AUTO COMPONENTS & ACCESSORIES
Tata Motors, India?s largest automobile company, unveiled two state-of-the-art & new-age R&D facilities for meeting its mission of offering sustainable mobility solutions. The unveilings constitute of Read more
Tata Motors plans petrol powertrain for Harrier and Safari SUVs
AUTO COMPONENTS & ACCESSORIES
Tata Motors is in the process of developing a new petrol powertrain for its premium sports utility vehicles, the Harrier and Safari, as confirmed by a senior company official. Currently, these models Read more
Electric Vehicle Charger
AUTO COMPONENTS & ACCESSORIES
RRT Electro is engaged in manufacturing of customized Power Electronic Products over two decades having capability to Design, Develop, Prototyping, Regulatory Compliance testing & Certification, Manuf Read more
latest News
Subscribe to iNoW
For Industry News on WhatsApp, Give a Miss Call on: +91 84228 74016
