Samvardhana Motherson registers 28% growth to clock Rs 23,474 crore in Q2 FY24

Noida-headquartered Tier-1 major of a highly-diversified automotive component product portfolio encompassing wiring harnesses, to rear-view mirrors, and interior trim components among others, Samvardhana Motherson International has reported revenues of Rs 23,474 crore in Q2 FY24, registering a 28 percent year-on-year growth. Its EBITDA, at Rs 2,001 crore, registered a 34 percent growth, while profit-after-tax (PAT) grew 39 percent to reach Rs 451 crore in the last quarter.

The company says its automotive business order book swelled to over US$ 77 billion (Rs 64,130 crore) by end-September 2023, from being pegged at US$ 69.1 billion (Rs 57,550 crore) by end-March 2023. According to the company, over 22 percent of this order book is understood to be coming from parts for electric vehicles. However, the company also attributed the lower production on account of annual plant shutdowns in Europe owing to summer holidays, with the impact getting compounded by local disruptions in Europe and America.

According to Vivek Chaand Sehgal, Chairman, Motherson, “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 US$ 77 billion reflects the strong relationship and mutual trust we share with our customers."

Samvardhana Motherson International commenced setting up of 10 new facilities in India to support its customer’s growth in both the automotive- and non-automotive businesses, while it closed four acquisitions – SAS, Saddles, Rollon, and Ichikoh during Q2 FY24.