Ancillary major Samvardhana Motherson (SMIL) has posted a strong 20 percent year-on-year growth in revenue at Rs 27,058.20 crore, and a sharply higher net profit of Rs 1,372 crore, along with lower leverage and net debt. Shares of SMIL were holding up in an otherwise weak market.
Fourth quarter margin came in at 10.8% as against 9.2% a year ago. The company also recommended a dividend of Rs 0.80 per equity share for the financial year ended March 31, 2024.
Despite payouts arising out of M&A activity and capex for growth, Motherson has maintained its leverage ratio at 1.4x - the same level as last year. "We have also maintained a healthy financial position by keeping leverage and debt under control," Vivek Chaand Sehgal, Chairman, Motherson said in a release to the stock exchange on May 29.
The investor presentation by SMIL shows its leverage reduced to 1.4x by end of FY24 as against 1.7x in December, and gross debt came down by about Rs 1,800 crore.
What also helped SMIL was the global automotive production on a full year basis grew across key geographies, with Europe and North America 10-15% below pre-covid levels while India and China are back at pre-covid levels, the company said.
The company is upbeat about the aerospace and consumer electronics business. "We also foresee good traction from our non-automotive businesses, such as aerospace, consumer electronics, and health and medical. To fully utilise our manufacturing capabilities, we are setting up new facilities across emerging markets," Sehgal added.
A large part of the growth capex has gone into emerging markets, Motherson said, adding that 18 greenfield projects are set to come on stream in FY25 and FY26.
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