(Reuters) -Indian auto-parts maker Samvardhana Motherson posted a smaller-than-expected drop in second-quarter profit on Thursday, as revenue rose across all segments, with its emerging businesses unit recording the biggest increase.
Its consolidated net profit fell 6% to 8.27 billion rupees ($94.09 million) in the three months ended September 30, above analysts’ estimate of profit falling to 8.02 billion rupees, per data compiled by LSEG.
Revenue from operations rose 8.5% to 301.73 billion rupees, above analysts’ average estimate of 297.98 billion rupees.
KEY CONTEXT
While global auto demand continued to be muted during the quarter, the Indian market — which accounts for about a fifth of Samvardhana Motherson’s revenue — held up, supported by a demand lift from an early festive season.
The company, which makes wiring harnesses, bumpers and mirrors, likely benefitted from the ramp-up of emerging businesses, new programmes and the integration of acquisitions, supporting its revenue growth, analysts at Ambit Capital had said in a pre-earnings note.
The emerging businesses segment makes automotive lighting and electronics, precision metal components and also provides aerospace, logistics, medical and industrial-solutions services.
The firm’s customers include Volkswagen, Mercedes-Benz, Maruti Suzuki and Tesla.
PEER COMPARISON
Valuati Estimates Analysts’
on (next 12 sentiment
(next months)
12
months)
RIC PE EV/ Reve Prof Mea # Stock Div
EBI nue it n of to yie
TDA grow grow rat ana price ld
th(% th(% ing lys target (%)
) ) * ts **
Samvardhana 23 9.9 7.33 19.5 Buy 20 0.93 0.5
Motherson .5 1 2 5
Internation 0
al
Bosch 42 35. 8.60 14.2 Hol 4 1.08 1.3
.4 61 5 d 9
7
UNO Minda 50 28. 17.5 26.0 Buy 17 0.95 0.1
.9 54 7 3 8
4
Sona BLW 40 23. 20.4 15.0 Buy 16 0.91 –
Precision .2 70 2 9
Forgings 8
* Mean of analysts’ ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell** Ratio of the stock’s last close to analysts’ mean price target; a ratio above 1 means the stock is trading above the PT
JUNE-SEPT STOCK PERFORMANCE
— All data from LSEG
— ($1 = 87.8950 Indian rupees)
(Reporting by Aleef Jahan in Bengaluru; Editing by Harikrishnan Nair)
