Samvardhana Motherson Q3 Results: 55.4% YoY Profit Surge to ₹984.35 Cr and Overview
Business and Industry Overview:
Samvardhana Motherson is India’s leading auto parts manufacturer in terms of market capitalization, with notable clients including Maruti Suzuki and Mercedes-Benz. The company, officially known as Samvardhana Motherson International Ltd (formerly Motherson Sumi Systems Ltd), is a multinational manufacturer of automotive components headquartered in Noida, India. It specializes in producing wiring harnesses, plastic components, and rearview mirrors for passenger cars. Established in 1986, the company began as a joint venture with the Sumitomo Group of Japan. The Motherson Group provides a wide range of products and services through its 12 business divisions. With the support of its customers, these divisions continue to strengthen and diversify, helping Motherson move closer to its vision of becoming a globally preferred provider of sustainable solutions. The three key divisions of the group—Wiring Harness, Vision Systems and Modules, and Polymer Products—account for over 95% of the group’s revenues. Operating in 41 countries across North America, South America, Europe, South Africa, the Middle East, Asia-Pacific, and Australia, SAMIL manages more than 270 manufacturing facilities and employs over 135,000 professionals worldwide. This extensive global presence allows the company to effectively serve major automotive manufacturers, including Maruti Suzuki, Mercedes-Benz, Tata Motors, Volkswagen, Ford Motor Company, and Porsche.
India’s auto parts industry is experiencing significant growth, with a projected value of $200 billion by 2026. This growth is driven by strong demand from both international markets and the local aftermarket, as well as original equipment sectors. In 2024, India produced 100,000 electric cars and 900,000 electric two-wheelers. However, Internal Combustion Engine (ICE) vehicles continue to dominate the market, with 20 million two-wheelers and 5 million cars still in circulation. The auto component industry plays a crucial role in India’s economy, contributing 2.3% to the GDP and employing over 1.5 million people. It is projected to grow to 5-7% of the GDP by 2026, which could create an additional 3.2 million jobs. Additionally, the industry is a leader in exports, with an estimated export value of $21.2 billion for 2023-24. Significant markets for these exports include North America, Europe, and Asia, with North America alone accounting for 32% of total exports and experiencing a 5% growth rate. Samvardhana Motherson India has a market share of more than 40% in the Indian wiring harness industry.
Latest Stock News:
Indian auto parts manufacturer Samvardhana Motherson reported a smaller-than-expected increase in its third-quarter profit on Friday, impacted by weak global car sales. For the quarter ending December 31, the company’s consolidated profit rose to Rs 8.79 billion ($101 million). However, this figure fell short of analysts’ estimates, which predicted a profit of Rs 9.4 billion, according to data compiled by LSEG. Quarterly revenue increased 8 percent.
Segmental information:
Wiring Harnesses: One of the major segments is Wiring Harnesses, which serve as the electrical distribution system for vehicles. These harnesses consist of a network of cables, connectors, and terminals that transmit power and signals between different electronic components. They are essential for various vehicle functions, including lighting, infotainment, engine control, and battery management in electric vehicles (EVs).
Rearview Mirrors: Another important segment is Rearview Mirrors, which includes both exterior and interior mirrors equipped with advanced features. Modern rearview mirrors incorporate technologies such as electrochromic dimming (anti-glare), blind-spot detection, integrated cameras, and turn indicators. Samvardhana Motherson Reflectec (SMR), a subsidiary of SAMIL, is a global leader in automotive mirror systems.
Moulded Plastic Parts: The Moulded Plastic Parts segment focuses on interior and exterior vehicle components made from plastic. These include dashboards, door trims, bumpers, center consoles, and air vents. Lightweight plastic components help improve fuel efficiency and reduce vehicle weight, which is especially important for EVs and modern fuel-efficient cars. SAMIL’s subsidiary, Samvardhana Motherson Peguform (SMP), specializes in these components, catering to global automakers.
Rubber Components: The Rubber Components segment covers products such as seals, gaskets, and weatherstrips, which play a crucial role in noise reduction, vibration damping, and sealing gaps in vehicles. These components help prevent water leakage, reduce wind noise, and maintain cabin insulation, contributing to passenger comfort and vehicle durability.
Modules and Systems: The Modules and Systems segment offers integrated solutions, including cockpit modules, complete door panels, instrument panels, and lighting systems. These pre-assembled units simplify installation for automakers and enhance production efficiency. The company’s expertise in module assembly and system integration makes it a valuable partner for major global auto manufacturers.
Subsidiary Information:
1. Samvardhana Motherson Reflectec (SMR : SMR is a leading global supplier specializing in rearview mirrors and camera-based detection systems. The subsidiary focuses on manufacturing exterior and interior mirrors equipped with advanced technologies, such as auto-dimming, integrated cameras, blind-spot detection, and turn indicators. These smart mirror solutions enhance driver safety and visibility, making them a critical component in modern vehicles. SMR serves major automakers worldwide, contributing significantly to SAMIL’s global revenues.
2. Samvardhana Motherson Peguform (SMP) : SMP specializes in interior and exterior polymer modules, producing components such as dashboards, door panels, bumpers, and center consoles. These parts are essential for vehicle aesthetics, functionality, and structural integrity. SMP’s expertise in lightweight plastic components helps automakers improve fuel efficiency and reduce vehicle weight, aligning with the growing demand for electric and fuel-efficient vehicles. Through SMP, SAMIL has strengthened its position as a key supplier of high-quality plastic modules in the global automotive market.
3. PKC Group : PKC Group is a Finnish company acquired by SAMIL in 2017, enhancing its expertise in wiring harnesses for commercial vehicles. Wiring harnesses are critical for electrical power distribution and signal transmission in automobiles, and PKC Group’s specialization extends beyond passenger cars to include trucks, buses, and heavy-duty commercial vehicles. This acquisition expanded SAMIL’s market reach into the commercial vehicle segment, allowing it to cater to a broader range of automotive manufacturers across the globe.
Q3 Highlights:
- Total income for the quarter was ₹27,777 crore, representing an over 8% increase from ₹25,644 crore in the same period last year.
- Sequentially, profit rose nearly 4% from ₹949 crore in Q2FY25.
- Revenue declined marginally by 1% from ₹28,071 crore in Q2FY25.
- Samvardhana Motherson reported a net profit of ₹984.35 crore for Q3FY25, marking a 55.4% year-over-year increase.
Financial Summary:
| Amount in ₹ Cr | Q3 FY24 | Q3 FY25 | FY23 | FY24 |
| Revenue | 25,644.00 | 27,666.00 | 78,788 | 98,692 |
| Expenses | 23,273 | 24,980 | 72,537 | 89,370 |
| EBITDA | 2,370 | 2,686 | 6,251.00 | 9,322.00 |
| OPM | 9% | 10% | 8% | 9% |
| Other Income | 117 | 214 | 70 | 140 |
| Net Profit | 633.00 | 984.00 | 1,670 | 3,020 |
| NPM | 2.47 | 3.56 | 2.12 | 3.06 |
| EPS | 2.7 | 13.57 | 29% | 20% |