Motherson Sees 44% Increase in EBITDA, PAT Up 65%

Samvardhana Motherson International Limited (SAMIL) today announced its financial results for the fiscal year 2024-25, which ended on 30th June 2024.

Commenting on the results, Mr Vivek Chaand Sehgal, Chairman, Motherson said,

“The company has delivered robust quarterly performance despite flat industry volumes. All announced acquisitions have been successfully integrated and have started to contribute positively; their full potential will be realised in the coming months. Financial prudence helped keep the Leverage ratio to 1.5x. We continue to invest in our auto and non-auto businesses; while 2 of our facilities have commenced production, 17 of our Greenfields across emerging markets for auto and non-auto businesses are at different stages of completion. We remain thankful to our customers for their support and to our global teams for their relentless efforts.”

Key Highlights

•       Strong revenue growth amidst muted industry volume growth and evolving platform mix; all announced M&As closed.

•       Improved profitability due to scale benefits and margin accretive M&As.

•       Multiple ratings upgrade :

•   Moody’s upgrades to BAA3 / Stable

•   Fitch issue rating to BBB-

•   CRISIL to AAA / Stable

•   Japanese Credit Rating (JCR) assigned as A / Stable

•       Greenfield investments are on track. Two facilities have commenced production (from the earlier announced 18 facilities), and one new Greenfield is in Mexico. Capex for the quarter is Rs 1,078 crores.

•       Leverage ratio maintained at comfortable levels (1.5x) despite increased Net debt primarily due to M&A closures.

•       Diversified business model to further strengthen with scale-up of non-auto businesses

•       Issued first dual investment grade bonds of USD 350 Mn in July in a Debt Neutral Transaction