India's Samvardhana Motherson misses quarterly profit estimates as global car sales decline

Samvardhana Motherson International

29/05/2025 11:24

May 29 (Reuters) -    Samvardhana Motherson SAMD.NS, 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).

KEY CONTEXT

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, Volkswagen VOWG_p.DE, Audi and BMW BMWG.DE among its top customers in Europe.

Earlier this month, peer Sona BLW SONB.NS 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

Valuation (next 12 months)
Estimates (next 12 months)
Analysts' sentiment
RIC
PE
EV/EBITDA
Revenue growth (%)
Profit growth (%)
Mean rating*
No. of analysts
Stock to price target**
Div yield (%)
Samvardhana Motherson International
SAMD.NS
22.37
9.39
7.82
26.05
Buy
21
0.94
0.34
Bosch
BOSH.NS
40.17
32.72
11.05
13.35
Hold
4
1.10
1.15
UNO Minda
UNOI.NS
46.68
25.38
18.47
27.35
Buy
16
0.90
0.22
Sona BLW Precision Forgings
SONB.NS
41.73
25.20
25.13
17.35
Buy
16
0.98
0.59

* 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

JANUARY-MARCH STOCK PERFORMANCE https://tmsnrt.rs/43CDxPs

 (Reporting by Manvi Pant in Bengaluru; Editing by Harikrishnan Nair)

 ((Manvi.Pant@thomsonreuters.com; +918447554364;))