India's Samvardhana Motherson misses quarterly profit estimates as global car sales decline
May 29 (Reuters) - Samvardhana Motherson (SAMD.NS), opens new tab, India's top auto parts maker by market capitalisation, missed quarterly profit estimates on Thursday, hurt by weak global vehicle sales.
The company's consolidated profit dropped 23% to 10.51 billion rupees (about $123 million) for the quarter ended March 31. Analysts, on average, expected a profit of 10.95 billion rupees, according to data compiled by LSEG.
Revenue grew 8% to 293.17 billion rupees, ahead of analysts' forecast of 287.85 billion rupees.
Shares of the company hit an intraday high after results and closed 2.3% higher.
For detailed earnings highlights, click (Full story).
European car sales have been affected due to competition from China, the uncertainty around a 25% U.S. import tariff, and high costs.
Samvardhana Motherson counts German auto majors such as Mercedes-Benz (MBGn.DE), opens new tab, Volkswagen , Audi and BMW (BMWG.DE), opens new tab among its top customers in Europe.
Earlier this month, peer Sona BLW (SONB.NS), opens new tab reported a 10.4% quarterly profit rise on strong order book, but flagged a negative impact from the U.S. tariffs on short-term demand in the global auto industry.
PEER COMPARISON
* Mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** Ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT
JANUARY-MARCH STOCK PERFORMANCE
-- All data from LSEG
-- $1 = 85.4620 Indian rupees
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