Samvardhana Motherson Q4 Results: Operational performance weak as margin narrows from last year

Auto components manufacturer Samvardhana Motherson Ltd. reported its March quarter results on Thursday, May 29, which were weak on the operational front.

The company reported a 19.6% growth in its net profit to ₹1,051 crore from ₹878.6 crore that it had reported during the same quarter last year. Revenue for the quarter grew by 6% year-on-year to ₹29,317 crore.

However, Samvardhana Motherson's Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) declined by 1.6% from the year-ago quarter to ₹2,643 crore, while margins narrowed by 70 basis points from last year to 9% from 9.7%.

The company's board has approved a bonus issue of shares in the ratio of 1:2, subject to necessary approvals from shareholders at the upcoming annual general meeting.

Samvardhana Motherson's board has also given in-principle approval to issuerated, listed, unsecured, redeemable, non-convertible debentures of a face value of ₹1 lakh, aggregating to ₹8,500 crore on a private placement basis.

In its post earnings statement, Motherson Group Chairman Vivek Chaand Sehgal said that the company's booked business value of over $88 billion encompasses non-automotive business as well.

The company also said that majority of the impact from the trade barriers is being mitigatedby being US MCA compliant. There are also positive discussions with customers for pass-through of tariff-related charges.

Shares of Samvardhana Motherson are off the highs of the day, currently trading 0.5% lower at ₹147.99 after the results announcement.