Samvardhana Motherson International posts multi-fold rise in Q2 profit to Rs 949 crore

Auto components maker Samvardhana Motherson International Ltd on Tuesday reported a multi-fold increase in consolidated net profit at Rs 948.81 crore in the September quarter, riding on healthy revenue growth. The company had posted a consolidated net profit of Rs 294.15 crore in the corresponding quarter last fiscal year, Samvardhana Motherson International Ltd (SAMIL) said in a regulatory filing.

During the previous year, the company had incurred exceptional expenses that included provision for expenditure to be incurred in respect of phased operational restructuring of certain units located in Europe, including in France and Germany, amounting to Rs 250 crore, it added.

Consolidated total revenue from operations stood at Rs 27,811.86 crore as against Rs 23,527.46 crore in the year-ago period, the company said.

Total expenses in the second quarter were higher at Rs 27,012.92 crore as compared to Rs 22,894.99 crore in the same period a year ago.

"These results highlight our strength and adaptability in an uncertain business environment. Our prudent management of the leverage ratio has positioned us well for sustainable growth. This strategic approach ensures that we maintain a healthy balance sheet while continuing to invest in the future," Motherson Chairman Vivek Chaand Sehgal said.

He further said, "Our automotive booked business is USD 88 billion approximately and has been growing consistently, reflecting the trust our customers have in us. Our non-automotive businesses have been growing consistently, contributing to overall growth with stability and diversification."