Samvardhana Motherson International Ltd reported strong performance in the fourth quarter of financial year 2022-23. Revenues grew 30 percent year on year to Rs 22,476 crore versus Rs 17,241 crore in the same quarter of last year. Earnings before interest, tax, depreciation and amortisation (EBITDA) is 60 percent higher at Rs 2,021 crore, while EBITDA margins improved 170 bps to 9 percent. The net profits from continuing operations jumped to Rs 699 crore from Rs 130 crore in the corresponding quarter of last year.
The company in its press release said that it posted its highest ever yearly and quarterly revenues. "Strong booked business of nearly Rs 5.70 lac crores from the automotive business."
The volumes recovered in Europe, North America and India, but China volumes de-grew due to extended new year holidays post covid.
In terms of segmental revenues, the wiring harness revenues at Rs 7,472 crore are 26 percent higher in the fourth quarter. The modules and polymer products segment revenues grew 31 percent to Rs 12,114 crore and vision systems segment revenues at Rs 4,595 crore improved 26 percent year on year.
The 'emerging businesses' segment revenues are 22 percent higher at Rs 1,824 crore. Emerging businesses comprise elastomers, lighting and electronics, precision metals and modules, technology and industrial solutions, logistics solutions, aerospace, health and medical and services operations of the group.
The company has a strong footing in the electric vehicle space as well. Nearly 7 percent of revenues for fourth quarter and 6 percent for FY23 was contributed by supplies to electric vehicles.
On the outlook, the company says higher inflation, volatile commodity, elevated interest rates and wage pressure continue to be a challenge. "Elevated cost structures seems like the ‘new normal’.
The company's net debt has reduced to Rs 7,474 crore as on 31st March 2023, compared with Rs 8,442 crore as on 31st Dec 2022 and Rs 7,768 crore as on 31st March 2022.
The Board has recommended a dividend of Rs 0.65 (Sixty Five Paise only) per equity share (face value of Re. 1/- each) for the financial year ended March 31, 2023. Samvardhana Motherson International Ltd.
The stock is trading nearly 1 percent lower on the exchanges post results declaration.
Samvardhana Motherson International is one of the leading automotive component manufacturing companies for OEMs. The company, formerly known as Motherson Sumi Systems Limited, was established in 1986 as a joint venture with Sumitomo Wiring Systems.
