Bengaluru 13th Feb 2024 – Samvardhana Motherson International Limited (SAMIL) [formerly Motherson Sumi Systems Ltd.] today announced its financial results for the third quarter of the fiscal year 2023-24, which ended on 31st December 2023.
Commenting on the results, Mr. Vivek Chaand Sehgal, Chairman, Motherson said,
“These results reflect the good performance of our business divisions. Our team’s unwavering commitment to our core values of customer satisfaction and operational excellence has helped us deliver good results consistently. Reduction in Net Debt is important for us as we continue strengthening our financial position and pursuing strategic growth opportunities. We remain focused on delivering sustainable and profitable growth, creating long-term value for our shareholders, and positively impacting our customers, employees, and communities where we operate.”
Key Highlights
- Resilient business platform delivering improved performance despite the model mix not going as envisaged by OEMs.
- The leverage ratio improved to 1.7x from 1.9x; Overall leverage is at a comfortable level.
- Net Debt reduced by ~Rs 866 crores despite M&A payouts (net of cash/debt) of ~ Rs. 750 crores during Q3.
- Sufficient liquidity for meeting business requirements and funding of announced acquisitions.
- Approx. 50% of the Rs. 1,800 crores growth capex has already been invested to support growth in emerging markets.
- Measures taken to normalise the working capital situation have started to yield positive results.
Samvardhana Motherson International Limited (SAMIL) [Formerly Motherson Sumi Systems Ltd.]
Samvardhana Motherson International Limited (SAMIL) is one of the world’s leading specialised automotive component manufacturing companies for OEMs. The company, formerly known as Motherson Sumi Systems Limited, was established in 1986 as a joint venture with Sumitomo Wiring Systems and was listed in 1993 on BSE and NSE in India. The company is focused, dynamic, and progressive, providing customers with innovative and value-added products, services, and solutions. With a diverse global customer base of nearly all leading automobile manufacturers globally, the company supports its customers from more than 350 facilities across 42 countries in five continents. The company has diversified to support customers in non-automotive businesses, including technology and industrial solutions, health & medical, aerospace, and logistics. SAMIL is currently the largest auto ancillary in India and is ranked among the top 25 automotive suppliers worldwide.