3 weeks ago
Samvardhana Motherson Q1 profit doubles; eyes $108 billion by 2030
There is a big company that makes parts for cars and also other things like electronics and aerospace products.
The company is called Samvardhana Motherson, and it used to be known as Motherson Sumi Systems.
It wants to grow very big, aiming to earn $108 billion in a single year by 2030.
The company just shared how it did in the first three months of its new financial year.
Its profit more than doubled compared with the same time last year.
That means the company earned much more money than before.
However, the money it keeps after paying costs, called EBITDA, grew but at a slightly thinner margin.
The company is building new factories and has already opened three of them, with more on the way.
It also bought parts of two other companies, Yutaka Juken and Nexans Auto Electric, which will help it sell even more.
Samvardhana Motherson management is targeting a topline of $108 billion by 2030, with Gandharv also citing a $100 billion goal.
Q1 net profit more than doubled year-on-year to Rs 1,032 crore, supported by strong revenue growth.
EBITDA rose to Rs 3,096 crore in Q1, while the EBITDA margin narrowed to 8.8%, down about 230 basis points sequentially.
The company operationalised three plants in Q1, with 13 more at different stages coming onstream during FY27, and gave capex guidance of Rs 6,000 crore.
Deals with Yutaka Juken and Nexans Auto Electric were consummated in July, expected to add roughly $2 billion in annual topline growth.
- Who
- Samvardhana Motherson International Ltd (SAMIL), a globally diversified auto and non-auto manufacturer; executives Gandharv and Mittal commented on the results.
- What
- Reported Q1 earnings with net profit more than doubling year-on-year and announced a 2030 topline target of $108 billion.
- Where
- The India-headquartered company, which operates across India, China, Europe, and other global markets.
- When
- First quarter of FY27, with the Yutaka Juken and Nexans Auto Electric deals confirmed and consummated in July.
- Why
- Growth is driven by strong demand in India, strong revenue growth, new model launches, and two consummated acquisitions adding about $2 billion in annual topline.
Key facts
- Company
- Samvardhana Motherson International Ltd (SAMIL), formerly Motherson Sumi Systems Limited
- 2030 topline target
- $108 billion (management quote also cited $100 billion)
- Q1 net profit
- Rs 1,032 crore, more than doubled year-on-year
- Q1 EBITDA
- Rs 3,096 crore
- EBITDA margin
- 8.8%, down ~230 basis points sequentially
- FY27 capex guidance
- Rs 6,000 crore
- Plants
- 3 operationalised in Q1; 13 coming onstream during FY27
- July acquisitions
- Yutaka Juken and Nexans Auto Electric consummated; ~$2 billion annual topline expected
Quotes
Gandharv
CEO of Samvardhana Motherson International Ltd.
“For rest of the year, we'll also see approximately two billion dollars of top line growth on a yearly basis coming from these inorganic entities coming into the Group.”
businesstoday.in
“I were to give you guidance, there's only one project on which all of us are working, which is to achieve topline of $108 billion by 2030.”
businesstoday.in
Sources
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