Samvardhana Motherson Q2FY25 results: Net profit rises 4-fold to Rs 880 cr

Indian auto parts maker Samvardhana Motherson International reported a smaller-than-expected increase in second-quarter profit on Tuesday, hurt by slower demand.

The company, which supplies Maruti Suzuki, Mercedes Benz, Audi and other automakers, said consolidated net profit rose over four-fold to Rs 880 crore ($104.27 million) for the three months ended Sept. 30.

However, that missed analysts' average estimate of Rs 915 crore, according to data compiled by LSEG.

Indian automakers reported a decline in shipments to dealers for the first time in more than two years during the July-September quarter, to help manage the excess inventory.

This impacted companies such as Samvardhana Motherson, which makes products like bumpers and mirrors for vehicles and generates 75 per cent of its revenue from the automobile industry.

Its total revenue from operations of Rs 27,812 crore in the quarter also missed analysts' estimates of Rs 28,188 crore, while the 18.2 per cent growth rate was slower than the 28.3 per cent rate in the same period a year ago.

Cost of raw materials and services, a major chunk of the total expenses, jumped 10.7 per cent, pushing total expenses up by 18 per cent to Rs 27,013 crore.

The company's earnings before interest, taxes, depreciation, and amortization (Ebitda) margin was 8.9 per cent, up from 8.5 per cent in the year-ago quarter but down from 9.6 per cent in the previous quarter.

Samvardhana's shares closed about 5 per cent lower after the company reported its quarterly results.