Samvardhana Motherson Q4 results: Net profit falls 22.7%, revenue up 8%; bonus issue, dividend declared

Mint

4 days ago

Samvardhana Motherson Q4 results: Samvardhana Motherson International (SAMIL) (formerly Motherson Sumi Systems) has announced its financial results for the quarter ended March 2025 (Q4FY25).
The company's consolidated net profit declined 22.7 percent to ₹ 1,115.28 crore in Q4FY25 as against ₹ 1,444 crore in the same period last year. Meanwhile, sequentially, it rose 13.3 percent from ₹ 984.35 crore in the June quarter.
Its consolidated total revenue from operations also increased over 8 percent to ₹ 29,317 crore in the quarter under review versus ₹ 27,058 crore in year-ago period. Sequentially, it increased 6 percent from ₹ 27,666 crore in the June quarter.
Samvardhana Motherson reported a marginal decline in its operating performance for the quarter, with EBITDA slipping 1.6 percent year-on-year to ₹ 2,643 crore. The company also saw its EBITDA margin contract by 70 basis points, easing to 9 percent from 9.7 percent in the corresponding period last year.
Samvardhana Motherson's board has approved a bonus share issue in the ratio of 1:2, subject to shareholder approval at the upcoming annual general meeting. This means shareholders will receive one bonus share for every two shares held.
Samvardhana Motherson has proposed a final dividend of ₹ 0.35 per equity share (of face value Re 1 each) for the financial year 2024-25. The dividend recommendation applies to the company's entire share capital of 7,03,62,95,067 equity shares and is subject to shareholder approval at the upcoming Annual General Meeting (AGM), scheduled for August 28, 2025. If approved at the AGM, the final dividend will be paid within 30 days of declaration, i.e., by or before September 26, 2025. This final dividend will be in addition to the interim dividend of ₹ 0.50 per share already paid for FY25. The record date for the same has been set for June 23, 2025.
Additionally, the board has given in-principle approval for raising funds through the issuance of rated, listed, unsecured, redeemable non-convertible debentures (NCDs) with a face value of ₹ 1 lakh each. The total amount to be raised through this private placement route is set at ₹ 8,500 crore.
Chairman Vivek Chaand Sehgal of Motherson lauded the company's performance, underscoring its resilience and adaptability in the face of global volatility. He credited Motherson's robust engineering and manufacturing capabilities for enabling the group to consistently meet customer expectations while laying the groundwork for long-term, sustainable growth.
'Our booked business value has now crossed USD 88 billion, which includes significant contributions from our non-automotive segments. This positions us on a solid path for future expansion,' Sehgal said.
Reflecting on the company's achievements over the past five years, Sehgal highlighted that Motherson not only achieved its highest-ever sales but also outpaced the broader automotive industry. He noted that this growth was fueled by the establishment of multiple new facilities, the successful integration of 23 acquisitions, and entry into new industries—all accomplished while maintaining a strong focus on quality and customer satisfaction.
'These achievements were recognised globally through multiple quality awards. At the same time, we kept our sights on financial discipline, improving free cash flows and reducing our leverage ratio to its lowest level in the last five years,' he added.
Motherson has continued to outperform the broader industry, outpacing it by approximately 15 percent. This has been driven by strong content growth across product lines and an active mergers and acquisitions (M&A) strategy that has bolstered the company's expansion into new markets and segments.
At a consolidated level, the company achieved a return on capital employed (ROCE) of 17.2 percent.
Motherson maintained a healthy financial position, with net debt to EBITDA at a comfortable 0.9x. Capital expenditure for the financial year stood at ₹ 4,433 crore. The company said this spending was carefully calibrated in line with market conditions while ensuring that investments critical to long-term growth remained unaffected.
As part of its ongoing expansion plans, Motherson is executing 14 greenfield projects, with nine of them expected to become operational during FY26.
The company's total booked business value has now crossed USD 88 billion, with notable traction in non-automotive segments.
Additionally, the company has managed to cushion the majority of trade-related risks by remaining compliant with the US-Mexico-Canada Agreement (US MCA). Furthermore, Motherson is engaged in constructive conversations with its customers to pass on tariff-related costs, ensuring stability in profitability and cost competitiveness in global markets.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.