India's Samvardhana Motherson posts lower quarterly profit on weak global car demand

Samvardhana Motherson International

13/08/2025 10:01

Aug 13 (Reuters) - Samvardhana Motherson SAMD.NS, India's biggest auto parts maker by sales, posted first-quarter profit that fell by a third, hurt by weak global demand for cars.

The company's pre-tax profit declined to 8.84 billion rupees ($101.02 million) in the April-June period from 13.37 billion rupees a year ago.

Net profit fell nearly 50% to 5.12 billion rupees, including a one-time charge of 1.36 billion rupees tied to a restructuring of European operations.

Quarterly revenue rose 4.7% to 302.92 billion rupees, and expenses climbed 6.6% to 294.08 billion rupees.

For further earnings highlights, nFWN3U50C8

KEY CONTEXT

Samvardhana makes wiring harnesses, bumpers and mirrors, and boasts a broad customer base that includes Volkswagen, Mercedes-Benz, Maruti Suzuki and Tesla.

Car sales in top market India dropped 1.4% in the quarter on weak urban demand, while competition from cheaper Chinese models and U.S. trade uncertainties weighed on demand in overseas markets.

The company gets a fifth of its revenues from India, while the U.S., China and Germany account for close to a combined 50%. It has a manufacturing presence in India, Europe, as well as the U.S.

KEY QUOTE

"We are well-positioned to navigate evolving tariffs with the majority of our sales in the US being USMCA (United States-Mexico-Canada Agreement) compliant. For non-USMCA compliant parts, agreements with customers to pass on related costs are in progress." Chairman Vivek Chaand Sehgal said

Samvardhana shares were trading 4% higher at the day's high of 94.3 rupees after Sehgal's comments.

PEER COMPARISON

Estimates (next 12 months)
Analysts' sentiment
RIC
PE
EV/EBITDA
Revenue growth (%)
Profit growth (%)
Mean rating*
# of analysts
Stock to price target**
Div yield (%)
Samvardhana Motherson International Ltd
SAMD.NS
19.53
8.66
7.84
20.22
Buy
21
0.76
0.63
Bosch Ltd
BOSH.NS
46.97
38.74
8.94
15.59
Hold
4
1.14
1.33
UNO Minda Ltd
UNOI.NS
46.30
25.81
17.36
26.66
Buy
16
0.91
0.21
Sona BLW Precision Forgings Ltd
SONB.NS
34.97
20.61
22.01
11.74
Buy
16
0.84
0.73

* The mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell

** The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT

APRIL-JUNE STOCK PERFORMANCE

-- All data from LSEG

-- $1 = 87.5062 Indian rupees

SAMD v peers https://tmsnrt.rs/46VzIIy

 (Reporting by Nandan Mandayam in Bengaluru)

 ((Nandan.Mandayam@thomsonreuters.com; Mobile: +91 9591011727;))