Samvardhana Motherson International had a great Q3 in FY25, earning a net profit of Rs 879 crore. This is a big jump of 62% from last year’s profit of Rs 542 crore! Their revenue also grew by almost 8% to Rs 27,666 crore, compared to Rs 25,644 crore last year. The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) reached Rs 2,776 crore, although costs went up by 7% to Rs 26,559 crore.
Motherson’s profit margin improved too; it rose to 3.6% from 2.5% a year ago. Chairman Vivek Chaand Sehgal highlighted the strength and flexibility of their diverse business model. The company wants to keep its finances strong by controlling spending.
After these positive results, Jefferies, a global brokerage firm, kept a ‘Buy’ rating on Samvardhana Motherson, but they lowered the target price to Rs 165 from Rs 185. Their EBITDA margins were better than expected, although the global car market is still tough.
Samvardhana Motherson is also looking to grow in other areas besides cars, like electronics and space. They are making two new buys—Atsumitec and Baldi Auto—helping them become more diverse and better integrated. They’ve also been added to Airbus’ product list, widening their scope beyond just cars.
On Friday, the company’s shares closed at Rs 126, down 2.8% on the BSE, while the main market index, Sensex, dipped 0.26%. The stock has dropped 32% in the past six months but is still up 58% in the last three years. Their market value is now Rs 88,760 crore.
(Disclaimer: The views and opinions of experts are their own and do not reflect those of The llv News)
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