Samvardhana Motherson Q4 FY25 Results: Sees Profit Slide Even as Revenue Climbs

Formerly Motherson Sumi Systems, Samvardhana Motherson International (SAMIL) has released fourth-quarter ended March 2025 (Q4 FY25) financial results, reporting a sharp decline in net profit despite rising total revenue. The auto components major also announced a bonus issue and final dividend, and plans for massive fundraising.  The market reacted positively to the results, with the share price climbing 2.29% to close at ₹152.

 Q4 FY25 Financials

The firm posted a 22.7% consolidated net profit fall in Q4 FY25 to ₹1,115.28 crore from ₹1,444 crore during the same period last year. Sequentially, though, net profit improved by 13.3% from ₹984.35 crore posted during the December quarter.

Revenue from operations overall was resilient, growing more than 8% year-over-year to ₹29,317 crore in Q4 FY25 from ₹27,058 crore during the same quarter last year. On a sequential basis, revenue grew 6% from ₹27,666 crore in the June quarter.

Though revenue increased, Samvardhana Motherson saw a minimal fall in operating performance. Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) fell 1.6% year-on-year to ₹2,643 crore. The EBITDA margin thus fell by 70 basis points to 9% from 9.7% during the previous year period.

Motherson has continued to perform better than the overall industry, leading it by around 15%. The performance is based on robust content growth across products and an aggressive mergers and acquisitions (M&A) strategy.

At a consolidated level, the business posted a return on capital employed (ROCE of 17.2% Motherson had a strong financial position with net debt to EBITDA at a comfortable 0.9x. FY25 capital expenditure was at ₹4,433 crore, which was termed as carefully calibrated with market conditions.

Expansion plans are in full swing, with 14 greenfield projects under implementation, with nine likely to be commissioned in FY26. The company is also handling risks related to trade, such as adherence to the US-Mexico-Canada Agreement (USMCA), and collaborating with customers to transfer tariff-related expenses in order to remain profitable and cost competitive.

Dividends and Funding Activities

Samvardhana Motherson's board has sanctioned a bonus share issue in the proportion of 1:2. Shareholders will get one bonus share for every two shares they own, a resolution that will be recommended at the forthcoming Annual General Meeting (AGM).

Samvardhana Motherson also offered a final dividend of ₹0.35 per equity share (with face value of Re 1 each) for the year 2024-25. The record date for the final dividend is fixed for June 23, 2025. This final dividend is in addition to the interim dividend of ₹0.50 per share already paid for FY25.

In addition to this, the board has accorded in-principle approval to raise ₹8,500 crore. These funds will be raised through the issue of rated, listed, unsecured, redeemable non-convertible debentures (NCDs) of the face value of ₹1 lakh each through a private placement mode.

Management Guidance and Outlook

The firm emphasized its capability of weathering worldwide headwinds, attributing strong engineering capabilities and adaptive manufacturing to sustaining performance. It noted that booked business value has now exceeded USD 88 billion, partly fueled by increasing contributions from non-automotive segments.

In the last half-decade, the company has achieved record-breaking sales, outgrowing the overall automotive industry. Momentum was aided by establishment of new plants, consolidation of 23 acquisitions, and expansion into new business segments while upholding a fierce dedication to quality and customer satisfaction. Better free cash flows and a major decrease in leverage to a five-year low testify to continued financial discipline.

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