Indian auto parts maker Samvardhana Motherson beats quarterly profit estimates

Employees work on machines used to make auto parts at the factory of the Samvardhana Motherson Group in Noida·Reuters
Reuters
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BENGALURU (Reuters) - Indian auto parts maker Samvardhana Motherson International reported a better-than-expected profit for the first quarter on Tuesday, helped by a shift in customer preference to premium vehicles and a revenue boost from recent acquisitions.

The company, which supplies parts to automakers including Maruti Suzuki, Mercedes Benz and Audi, said consolidated net profit rose 65.5% to 9.94 billion rupees ($118.42 million) in the three months ended June 30.

Analysts had expected a profit of 9.51 billion rupees, according to LSEG data.

Total revenue from operations rose 28.5% to 288.68 billion rupees, beating estimates of 283.74 billion rupees.

For further earnings highlights, click here.

KEY CONTEXT

Auto parts makers such as Samvardhana Motherson are benefiting from an ongoing shift in customer preference to premium vehicles such as SUVs that require more ancillary parts.

Samvardhana Motherson, which makes products like bumpers and mirrors for vehicles, also got a revenue boost from its acquisitions of Dr. Schneider Group, Yachiyo, AD Industries and Lumen.

Total expenses, meanwhile, rose 27.6% to 276.02 billion rupees for the quarter, driven by higher prices of key raw materials like aluminium, lead and copper.

PEER COMPARISON

Valuation (next Estimates (next 12 Analysts' sentiment

12 months) months)

RIC PE EV/EBI Revenue Profit Mean # of Stock to Div

TDA growth growth rating* analyst price yield

s target** (%)

Samvardhana Motherson 27.06 11.34 16.53 45.65 Buy 19 1.09 0.43

Bosch 42.52 34.81 10.02 23.57 Hold 4 1.14 1.17

Minda Corporation 34.03 17.97 15.28 35.72 Buy 4 0.97 0.27

* The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell ** The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT

APRIL-JUNE STOCK PERFORMANCE

-- All data from LSEG IBES -- $1 = 83.9360 Indian rupees

(Reporting by Meenakshi Maidas in Bengaluru; Editing by Devika Syamnath)