Shares of Samvardhana Motherson International declined over 3 percent on February 14 despite the company reporting a strong financial performance for the third quarter of FY25.
The company posted a net profit of Rs 879 crore for the quarter ended December 31, 2024, marking a 62 percent year-on-year (YoY) increase from Rs 542 crore in Q3 FY24. Revenue from operations rose 8 percent YoY to Rs 27,666 crore, compared to Rs 25,644 crore in the same quarter last year.
Samvardhana Motherson’s EBITDA improved to Rs 2,776 crore, while total expenses grew 7 percent YoY to Rs 26,559 crore. The company’s net profit margin also improved, reaching 3.6 percent in Q3 FY25 compared to 2.5 percent in the previous year.
Additionally, the company strengthened its financial position, with the debt-equity ratio improving to 0.49 in Q3 FY25 from 0.82 in Q3 FY24.
Chairman Vivek Chaand Sehgal commented on the results, stating, “Our performance highlights the resilience and adaptability of our diversified business model. With strong engineering, manufacturing, and assembly capabilities, we are well-positioned for future growth. I am also pleased to announce that our first consumer electronics plant became operational this quarter, further expanding our non-automotive business.”
Following the results, Samvardhana Motherson’s stock closed at Rs 126.15 apiece on February 14. While the stock is still 18 percent above its 52-week low of Rs 107.05, it remains 42 percent below its 52-week high of Rs 217.
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Source: Moneycontrol
