Q3 2024 Samvardhana Motherson International Ltd Earnings Call Transcript
Key Points
- Samvardhana Motherson International Ltd (BOM:517334) reported a robust revenue growth of 27% year-over-year, reaching INR 25,700 crores.
- EBITDA showed a significant improvement, growing by 42% year-over-year to INR 2,400 crores.
- Net profit on a normalized basis increased by 61% year-over-year to INR 733 crores.
- The leverage ratio was reduced from 1.9x to 1.7x, with further reductions expected by year-end.
- The company is expanding its footprint in India with 11 new greenfield projects to support growth in both Automotive and Non-Auto businesses.
- Hyperinflation in Argentina negatively impacted the reported PAT by approximately INR 190 crores due to significant currency devaluation.
- Geopolitical conflicts and inflation continue to create headwinds for the company.
- Interest costs have been rising due to refinancing of low-cost debt at current higher rates.
- The vehicle OE mix was weaker in the quarter, impacting the International business segment.
- Freight rate volatility due to geopolitical issues in the Red Sea could potentially impact supply chain and inventory levels.
Ladies and gentlemen, good day, and welcome to Q3 FY '24 Results Conference Call of Samvardhana Motherson International Limited. (Operator Instructions) I now hand the conference over to Mr. V.C Sehgal. Thank you, and over to you, Mr. Sehgal.
Thank you. Good evening, ladies and gentlemen. Thank you for joining the results conference call of SAMIL. I'm pleased to announce that the Board has approved, as a result for quarter 3 and congratulated the various teams. SAMIL has delivered a strong performance across all business divisions on the back of automotive industry having good growth across regions.
The leverage ratio has been reduced to 1.7x from 1.9x, having accounted for all the closed acquisitions. We are very comfortable with our debt and liquidity profile and the visibility to reduce further by the year-end. India is at the center of our expansion plans. We see a lot of traction coming for Automotive and Non-Auto businesses in India and to support with further growth, we are setting 11 greenfield in India.
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