Indian auto parts maker Samvardhana Motherson misses third-quarter profit view

Samvardhana Motherson International

14/02/2025 10:16

Feb 14 (Reuters) - Indian auto-parts maker Samvardhana Motherson  SAMD.NS  reported a
smaller-than-expected rise in third-quarter profit on Friday, hurt by weak global car sales.
    The company's consolidated profit rose to 8.79 billion rupees ($101 million) in the quarter ended
December 31 but fell short of analysts' estimate of 9.4 billion rupees, according to data compiled by LSEG.
    Quarterly revenue increased 8%.
    For detailed earnings highlights, click  urn:newsml:reuters.com:*:nFWN3P50II
    
        KEY CONTEXT
  
        Samvardhana Motherson is India's top auto parts maker by market capitalisation and counts carmakers
from Maruti Suzuki  MRTI.NS  to Mercedes-Benz  MBGn.DE  among its customers.
    However, global car sales were down about 1% in the quarter, the company said. It was also hurt by a
decline in margins at its top modules and polymers business to 8% from 8.8%.
    Together, they offset gains the company had begun to reap from prior acquisitions, analysts said.
    German auto majors Mercedes, Volkswagen  VOWG_p.DE , Audi and BMW  BMWG.DE  are among the company's top
customers in Europe.
    The company earns about half of its revenue from parts like bumpers and the rest from wiring harnesses,
rear view mirrors, sunroofs and door and dashboard panels.
    
    
    PEER COMPARISON  
  
                                             Estimates (next 12         Analysts' sentiment        
                                                  months)                                          
                      RIC    PE     EV/EBI  Revenue     Profit    Mean     # of     Stock to       Div
                                    TDA     growth (%)  growth    rating*  analyst  price          yield
                                                        (%)                s        target**       (%)
 Samvardhana                                                                                   
 International Ltd                                                                                 
 Bosch Ltd                                                                                     
 UNO Minda Ltd                                                                                 
 Sona BLW Precision                                                                            
 * 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
        
  

OCT-DEC STOCK PERFORMANCE
 -- All data from LSEG
 -- $1 = 86.7920 Indian rupees

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Samvardhana v Peers    https://tmsnrt.rs/3CS2RaG
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 (Reporting by Nandan Mandayam in Bengaluru; Editing by Eileen Soreng)
 ((Nandan.Mandayam@thomsonreuters.com; Mobile: +91 9591011727;))