Samvardhana Motherson's FY24 profit jumps 82% YoY, Q4 profit up 110%

Samvardhana Motherson International Ltd today posted an 82 percent jump in its net profit for the financial year 2024, driven by robust operating performance and share of profit from joint ventures. Profit for the March quarter doubled on a year-on-year basis.

The auto component maker’s consolidated net profit for the year came in at Rs 2,716.2 crore, compared with Rs 1,495.6 crore in FY23. Operating profit, or EBITDA, grew 46 percent on year to Rs 9,325 crore. Revenue from operations rose 25 percent to Rs 98,692 crore with strong performance across all divisions.

The segments saw double-digit growth in its business during the financial year. The modules and polymer products business is the largest revenue contributor with a 43 percent share, followed by wiring harnesses, vision systems, and emerging businesses at 27 percent, 17 percent, and 7 percent, respectively.

Sales in the modules and polymer products business were driven by the growth in light vehicle volumes across geographies and the increase in the contents due to premiumization. Strong demand for medium and heavy-duty trucks in North America, Europe and China, as well as for passenger vehicles in India boosted revenue in the wiring harness business.

Operating profit margin, or EBITDA margin, expanded to 9.2 percent from 8 percent in FY23. Total expenses during the year rose 24 percent to Rs 95,026.8 crore.

The net profit growth was further boosted by Rs 237.6 crore as a share of profit from associate companies and joint ventures. In FY23, the company recorded a loss of Rs 43.75 crore from the share of loss from the associates and joint ventures. However, Samvardhana Motherson recorded a one-time loss of Rs 249.9 crore on account of the provision for expenditure to be incurred in respect of the phased operational restructuring of certain units located in Europe.

Meanwhile, for the quarter ended March 31, Samvardhana Motherson’s consolidated net profit totaled Rs 1,371.8 crore, against Rs 654 crore in the year-ago quarter. EBITDA grew 45 percent on year to Rs 2,999 crore, while EBITDA margin improved to 10.1 percent from 9 percent in the fourth quarter of FY23.

Revenue from operations grew 20 percent on year during the quarter to Rs 27,058.2 crore. The company received Rs 76.5 crore as a share of profit from associates and joint ventures, compared to a loss of Rs 24.4 crore in the year-ago quarter.

The board has also recommended a dividend of Rs 0.80 per equity share for the financial year 2024, subject to approval from shareholders.