Indian auto parts maker Samvardhana Motherson misses Q2 profit estimates as car sales slow

Samvardhana Motherson International

12/11/2024 11:21

Nov 12 (Reuters) - Indian auto parts maker Samvardhana
Motherson International  SAMD.NS  reported a
smaller-than-expected increase in second-quarter profit on
Tuesday, hurt by slower demand.
    The company, which supplies Maruti Suzuki  MRTI.NS ,
Mercedes Benz, Audi and other automakers, said consolidated net
profit rose over four-fold to 8.8 billion rupees ($104.27
million) for the three months ended Sept. 30.
    However, that missed analysts' average estimate of 9.15
billion rupees, according to data compiled by LSEG.
    Indian automakers reported a decline in shipments to dealers
for the first time in more than two years during the
July-September quarter, to help manage the excess inventory.
    This impacted companies such as Samvardhana Motherson, which
makes products like bumpers and mirrors for vehicles and
generates 75% of its revenue from the automobile industry.     
    Its total revenue from operations of 278.12 billion rupees
in the quarter also missed analysts' estimates of 281.88 billion
rupees, while the 18.2% growth rate was slower than the 28.3%
rate in the same period a year ago.
    Cost of raw materials and services, a major chunk of the
total expenses, jumped 10.7%, pushing total expenses up by 18%
to 270.13 billion rupees.
    The company's earnings before interest, taxes, depreciation,
and amortization (EBITDA) margin was 8.9%, up from 8.5% in the
year-ago quarter but down from 9.6% in the previous quarter.
    Samvardhana's shares closed about 5% lower after the company
reported its quarterly results.
 
 ($1 = 84.3975 Indian rupees)

 (Reporting by Meenakshi Maidas in Bengaluru; Editing by Sumana
Nandy; Editing by Savio D'Souza)
 ((mailto:Meenakshi.Maidas@thomsonreuters.com; +91 8921483410;))