MOTHERSON · Automobile and Auto Components
Samvardhana Motherson International Ltd. reported revenue of ₹27,812 cr for July to September 2024, +18.5% on the year and −3.7% on the quarter.
Operating profit (EBITDA) was ₹2,448 cr, a margin of 8.8%, +75 bps on the year and −81 bps on the quarter. Over the last 6 quarters the margin has ranged from 8.0% to 10.8%, averaging 9.2%. Operating costs grew +17.5% against revenue growth of +18.5%, so more of each rupee of sales reached operating profit.
Net profit was ₹949 cr, +222.8% on the year and −13.5% on the quarter, with earnings per share of ₹0.83. Profit before other income, one-offs and tax grew 49.9%, so 173 points of the headline growth came from outside the core business. The tax rate of 24% is in line with its recent average.
A vehicle maker's revenue is volumes times average price, and its margin moves with steel, aluminium and rubber costs and with the share of exports and premium models. The quarterly statements do not carry volumes, realisation per vehicle and the export share; those come with the filing read.
On earnings per share of ₹3.69 over the last four quarters, the stock at ₹160.13 trades at 43.4 times trailing earnings.
Written from the quarterly statements. The filing read adds the balance sheet and cash flow filed with this quarter, the auditor's review, segment results, one-off items line by line and what management said on the call.
Most of the profit growth did not come from the business. What lifted the gap?
Source: Quarterly statements
Other income is carrying a large and rising share of profit. Treasury gains, interest, or one-off?
Source: Quarterly statements
Could not run on this quarter: Exceptional items that recur, Cash behind the profit, Receivables against sales, Inventory against sales, Borrowing while holding cash, Auditor's review or audit report, IPO money used as stated, Related-party transactions, Exits, postponements, restatements, Promoter pledges and allotments, Earlier promises against delivery, When the results were filed. Most need the filing read (balance sheet, cash flow, auditor, disclosures).
Net profit a year ago, each driver's change, and net profit now. Blue added profit, red took it away.
This quarter's filing carries a balance sheet and a cash flow statement. The cash, receivables and borrowing checks run once the filing read is in.
| Q3 FY24 | Q4 FY24 | Q1 FY25 | Q2 FY25 | Q3 FY25 | Q4 FY25 | Q1 FY26 | Q2 FY26 | Q3 FY26 | Q4 FY26 | Q1 FY27 | Q2 FY27 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | ₹25,644 cr | ₹27,058 cr | ₹28,868 cr | ₹27,812 cr | ₹27,666 cr | ₹29,317 cr | ₹30,212 cr | ₹30,173 cr | ₹31,409 cr | ₹34,309 cr | ₹35,244 cr | ₹38,280 cr |
| YoY | — | — | +29% | +18% | +8% | +8% | +5% | +8% | +14% | +17% | +17% | +27% |
| EBITDA margin | 9.2% | 10.8% | 9.6% | 8.8% | 9.7% | 9.0% | 8.1% | 8.7% | 9.7% | 11.0% | 8.8% | 8.8% |
| Other income, % of PBT | 14% | 10% | 12% | 36% | 16% | 20% | 8% | 10% | 9% | 2% | 5% | 5% |
| Exceptional items | — | — | — | — | — | — | — | −₹36.2 cr | — | — | — | — |
| Tax rate | 26% | 7% | 24% | 24% | 26% | 11% | 30% | 32% | 30% | 22% | 30% | 29% |
| Net profit | ₹633 cr | ₹1,444 cr | ₹1,097 cr | ₹949 cr | ₹984 cr | ₹1,115 cr | ₹606 cr | ₹846 cr | ₹1,072 cr | ₹1,562 cr | ₹1,076 cr | ₹1,218 cr |
| YoY | — | — | +69% | +223% | +55% | −23% | −45% | −11% | +9% | +40% | +78% | +44% |
| Core profit YoY | — | — | +52% | +50% | +51% | −28% | −36% | +44% | +25% | +95% | +81% | +41% |
| EPS | ₹0.53 | ₹1.35 | ₹0.98 | ₹0.83 | ₹0.83 | ₹1.00 | ₹0.48 | ₹0.78 | ₹0.97 | ₹1.42 | ₹0.98 | ₹1.11 |
| Flags | 1 | 1 | 2 | 2 | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | 1 |
Each quarter is read with the same rules. Balance-sheet and cash checks run on half-year and annual quarters; filing-read checks run where a read exists.
Samvardhana Motherson International Ltd. reported revenue of ₹27,812 cr (+18.5% on the year) and net profit of ₹949 cr (+222.8% on the year) for July to September 2024.
Profit before other income, exceptional items and tax moved +49.9% on the year, against +222.8% for reported profit.
2 checks raised a question: Most of the profit growth did not come from the business. What lifted the gap?
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