Samvardhana Motherson shares drop 3% after company’s Q3 results

Shares of Samvardhana Motherson International fell over 3 percent on February 14 after the company reported a net profit of Rs 879 crore for the quarter ended December 31, 2024. This represents a growth of nearly 62 percent from the net profit of Rs 542 crore reported in the corresponding quarter of the previous fiscal.

Meanwhile, the company’s revenue from operations grew nearly 8 percent year-on-year to Rs 27,666 crore in the third quarter of FY2025. Its revenue from operations stood at Rs 25,644 crore in the third quarter of FY2024.

Svardhana Motherson’s EBITDA rose to Rs 2,776 crore during the reported quarter. Its expenses also grew nearly 7 percent to Rs 26,559 crore. Meanwhile, the automotive component maker’s net profit margin improved to 3.6 percent in Q3 FY25 from 2.5 percent in Q3 FY24.

The company’s debt equity ratio also improved, rising to 0.49 from 0.82 in Q3 FY25. Commenting on the results, Mr Vivek Chaand Sehgal, Chairman, Motherson, said, “Our performance reflects the resilience and adaptability of our diversified business model. Our engineering, manufacturing and assembly capabilities will help us navigate challenges while delivering future growth.

I am pleased to announce that our first plant for the consumer electronics business has become operational during the quarter, which will further strengthen our non-automotive businesses. We remain focused on maintaining a strong balance sheet with control on capital expenditure and leverage ratio.

” Shares of Samvardhana Motherson closed at Rs 126.15 on February 14 after the release of its third quarter results. The stock is currently trading 18 percent up from its 52-week low of Rs 107.05 per share. It is 42 per cent down from its 52-week high of Rs 217 per share.