Samvardhana Motherson International Results: Latest Quarterly Results & Analysis

Auto Parts & Equipment company Samvardhana Motherson International announced FY24 results:

• SAMIL reports revenues of Rs 98,692 crore, up by 25% for FY24
• Leverage ratio maintained at 1.4x (same as FY23) despite large M&A payouts and growth capex.
• Strong customer relationships reflected in USD 83.9 billion automotive booked business (excluding Yachiyo)
• Delivered ROCE of 17% for FY24, compared to 11% in FY23; continued focus on further improvements.
• Majority of Growth Capex is in emerging markets, 18 Greenfields are on track to come on stream in FY25 & FY26.
• Visible results of Inventory/working capital optimisation – continue to be a key focus area.
• All announced M&As closed as of May 2024, with integration well on track.

Commenting on the results, Vivek Chaand Sehgal, Chairman, Motherson said, “We are encouraged by the company's performance, which results from the efforts of business divisions and acquired entities. We have also maintained a healthy financial position by keeping leverage and debt under control. Our automotive booked business of over USD 83.9 billion provides strong revenue visibility. We also foresee good traction from our non-automotive businesses, such as aerospace, consumer electronics, and health and medical. To fully utilise our manufacturing capabilities, we are setting up new facilities across emerging markets. We are grateful to our customers for their trust and confidence in Motherson and want to express our sincere appreciation to our people globally for their dedication and hard work.”

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Auto Parts & Equipment company Samvardhana Motherson International announced Q3FY24 results:

Q3FY24 Financial Highlights:

• Revenue: Samvardhana Motherson International posted a revenue of Rs 25,698 crore, marking a year-over-year (YoY) growth of 27%.
• Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA): The EBITDA for the quarter stood at Rs 2,385 crore, which is a 42% increase compared to the same period the previous year.
• Profit After Tax (Normalized - PAT): SAMIL reported a normalized PAT of Rs 733 crore, witnessing a substantial increase of 61% YoY.

Operational Highlights

• Business Resilience: Despite varying OEM model mixes, the business platform remained resilient and delivered improved performance.
• Debt Metrics: The leverage ratio improved to 1.7x from 1.9x, and net debt reduced by approximately Rs 866 crore.
• Acquisitions and Capex: Despite net M&A payouts of around Rs 750 crore during Q3, a considerable amount of the Rs 1,800 crore growth capex has been invested.
• Liquidity and Working Capital: SAMIL maintains sufficient liquidity for its operational needs and funding for announced acquisitions. Positive results have begun to emerge from efforts to normalize the working capital situation.

Vivek Chaand Sehgal, Chairman of Motherson, said: "These results reflect the good performance of our business divisions. Our team's unwavering commitment to our core values of customer satisfaction and operational excellence has helped us deliver good results consistently. Reduction in Net Debt is important for us as we continue strengthening our financial position and pursuing strategic growth opportunities. We remain focused on delivering sustainable and profitable growth, creating long-term value for our shareholders, and positively impacting our customers, employees, and communities where we operate." 

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Auto Parts & Equipment company Samvardhana Motherson International announced Q2FY24 results:

1. Financial Performance:
- The company recorded revenue of Rs 23,474 crore, representing a growth of 28% compared to Q2FY23.
- EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) stood at Rs 2,001 crore.
- The company reported a Profit After Tax (PAT) of Rs 451 crore, excluding one-time provisions for footprint rationalization in the uncertain business environment.
- Leverage is under control - The net debt to EBITDA ratio is at 1.9x, well below the stated financial policy of 2.5x. This is despite paying approximately Rs 3,800 crore for the foreclosed acquisitions.

2. Booked Business and Acquisitions:
- SAMIL's automotive booked business grew to USD 77 billion, with a share of 22% coming from Electric vehicles.
- The company closed four acquisitions during the quarter, including SAS, Saddles, Rollon, and Ichikoh.

Commenting on the results, Vivek Chaand Sehgal, Chairman, Motherson, said, "This performance is a testament to our team's dedication and hard work on the back of customer support in navigating uncertain business environments. We are cautious yet confident in our ability to adapt and navigate through these challenges. The integration of acquired entities is at its initial phase and moving in the right direction towards unlocking its full value in the coming times. The booked business of over USD 77 billion reflects the strong relationship and mutual trust we share with our customers."

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Auto Parts & Equipment company Samvardhana Motherson International announced Q1FY24 results:

• Revenues of Rs 22,462 crore in Q1FY24
• EBITDA of Rs 1,940 crore in Q1FY24
• EBITDA Margin of 8.6% in Q1FY24
• PAT of Rs 601 crore in Q1FY24
• Outgrowing industry by far on a YoY basis with strong growth across all business divisions
• Strong growth in EBITDA is driven by operating efficiency, softening in material and energy prices, and continued customer support
• Leverage ratio of 1.4x maintained, normalisation of working capital underway
• EV’s revenue has increased over Rs 1,600 crore in Q1FY24 (FY23 EV revenue was ~Rs 4,900 crore)
• Macro-economic factors stabilising at elevated levels while wage bill and interest rates continue to mount pressure on profitability
• Sharing of inflationary pressure continues with customers.
• Continued focus on improving performance/restructuring of sub-optimal units alongside customers

Commenting on the results, Vivek Chaand Sehgal, Chairman, Motherson said, “We have delivered another quarter of strong performance. The automotive industry is stabilising with new cost structures and Motherson continues to adapt to the evolving landscape. We are working in close collaboration with our customers, and to better serve them in these challenging times we have closed 7 acquisitions with their support. We aim to bring innovative solutions, to streamline and solve operational issues. These acquisitions will further increase our value-added content and will provide new growth opportunities for Motherson. We are grateful to our customers for their trust and support.

Motherson extends a warm welcome to over 8,500 employees of the new companies into our family. We believe that these are very exciting times for Motherson.”

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Auto Parts & Equipment firm Samvardhana Motherson International announced Q4FY23 & FY23 results:

• Continued deleveraging, Net Debt to EBITDA ratio improved to 1.4x from 1.8x QoQ, Net Debt at Rs 7,474 crores, lower by 1,000 crores QoQ
• 7 Strategic acquisitions since April 2022 with a combined proforma revenue of USD 4.9 billion on a gross basis and USD 1.1 billion on a net basis approx.
• Q4FY23 Revenues at Rs 22,477 crore up 30% and FY23 Revenues at Rs 78,701 crore
• Q4FY23 EBITDA at Rs 2,066 crore up 61% and FY23 EBITDA at Rs 6,394 crore
• Q4FY23 PAT at Rs 654 crore up 438% and FY23 at Rs 1,496 crore

Commenting on the results, Mr. Vivek Chaand Sehgal, Chairman, Motherson said, “With the support of our customers and the hard work of our teams, the company has ended the year with strong performance. The robust booked business of nearly USD 70 billion is a reflection of customer trust in Motherson. SAMIL is well-positioned to gain from emerging trends in the automotive industry. The additional 7 strategic acquisitions and the M&A pipeline will further strengthen our business portfolio, and we look forward to exciting times ahead.”

Result PDF

Automobiles & parts manufacturer Samvardhana Motherson International announced Q2FY23 results:

• Q2FY23:
  • Quarterly revenues of Rs 18,261 crore, up by 4% QoQ and 30% YoY
  • Quarterly EBITDA of Rs 1,494 crore, up by 30% QoQ and 47% YoY
  • Quarterly PAT of Rs 246 crore, up by 75% QoQ and 196% YoY

Vivek Chaand Sehgal, Chairman, Motherson, said, “We are seeing improvement in the external environment though it remains volatile and uncertain. While constructive discussions with customers on sharing inflationary cost structures are moving in a positive direction, this continues to be a work-in-progress quarter. The strong growth in order book to Euro 18.2 billion at SMRP BV is a testimony to a strong relationship with our customers. Full credit to our business teams who have adopted a lot of efficiency programmes, the outcome of which is partly visible in the current results. Board congratulated the teams for their relentless efforts in this tough environment.”

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Auto parts company Samvardhana Motherson International announced Q1FY23 results:

• Consolidated:
  • Quarterly revenues of Rs. 17,615 crores
  • Quarterly EBITDA of Rs 1,151 crores, margin of 6.5%
  • Quarterly PAT of Rs 141 crores

Commenting on the results, Mr. Vivek Chaand Sehgal, Chairman, Motherson said, “The market demand remains strong, however, due to various supply chain constraints including chip shortages, production volumes of OEMs continued to fluctuate. The passenger car sales have shown improving trend from April to June. This quarter’s results are to be seen in the backdrop of continued high inflation, elevated freight, energy costs etc. Our teams are engaged with customers to align with them on the unusual inflationary pressures faced by the industry and the new macro environment, it’s work in progress.

In order to create a better world for future generations and in line with our customers’ expectations, we are setting the ambitious goal of becoming Carbon Net Zero across our current global operations by 2040.”

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Auto Parts & Equipment company Motherson Sumi Systems declares Q4FY22 result:

• Consolidated
  • Quarterly revenues of Rs. 16,911 crores,
  • Quarterly EBITDA of Rs 1,287 crores,
  • Quarterly PAT of Rs 122 crores,
• Standalone
  • Quarterly revenues of Rs. 1,611 crores,
  • EBITDA of Rs 293 crores at a margin of 18.2%
• SMRP BV
  • Quarterly revenues of Euro 1,327 million,
  • EBITDA of Euro 75 million at 5.7% margin
• PKC
  • Quarterly revenues of Euro 326 million
  • EBITDA of Euro 18 million at 5.7% margin
• Debt
  • Net debt decreases to Rs. 7,768 crores from Rs. 8,739 crores in Q3
  • Debt/EBITDA has increased due to high base effect in Q4FY21.
• 12MFY22 Consolidated:
  • Revenues of Rs. 62,832 crores
  • EBITDA of Rs 4,808 crores,
  • PAT of Rs 510 crores
• Standalone
  • Revenues of Rs. 5,297 crores,
  • EBITDA of Rs 712 crores at a margin of 13.4%.
• SMRP BV
  • Revenues of Euro 4,988 million,
  • EBITDA of Euro 342 million at 6.9% margin
• PKC
  • Revenues of Euro 1,225 million
  • EBITDA of Euro 51 million at 4.2% margin

Commenting on the results, Mr. Vivek Chaand Sehgal, Chairman, Motherson said, “The quarterly results are impacted due to global uncertainties such as continued semiconductor shortages, geopolitical conflict in Europe and Covid related lockdowns in China. This has been further aggravated by substantially high inflationary pressures. In these challenging times, we continue to focus on improving our operational efficiencies, control costs and remain focused on our 3CX10 diversification strategy.

The teams at Motherson are working very hard in collaboration with our customers to face these challenges. We would like to thank our customers for their trust and their continued support to Motherson globally. This quarter also marks a new beginning for Motherson, as the journey we embarked on in July 2020, is complete with two listed companies which have helped unlock value for their shareholders.”

Result PDF

Auto Parts & Equipment company Motherson Sumi Systems declares Q3FY22 result:

• Recovery in operations as production trends improve QoQ. Revenues of Rs 16,903 crores and EBITDA of Rs 1,383 crores for Q3
• Consolidated
  • Quarterly revenues of Rs. 16,903 crores
  • Quarterly EBITDA of Rs 1,383 crores
  • Quarterly PAT of Rs 246 crores
  • QoQ increase of 14% for both revenues and EBITDA with a 10bps uptick in EBITDA margin
  • QoQ comparison is a better representation of the supply chain volatility and elevated costs faced by the industry.
• Standalone
  • EBITDA of Rs 355 crores at a margin of 15.5%.
• SMRP BV
  • EBITDA of Euro 96 million at 7.3% margin
• Debt
  • Net debt marginally lower in Q3.
  • Debt/EBITDA has increased due to high base effect in Q3FY21.

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