(Reuters) -Samvardhana Motherson, India’s top auto parts maker by market capitalisation, missed quarterly profit estimates on Thursday, hurt by weak global vehicle sales. The company’s consolidated profit dropped 23% to 10.51 billion rupees (about $123 million) for the quarter ended March 31.
Analysts, on average, expected a profit of 10.95 billion rupees, according to data compiled by LSEG.
Revenue grew 8% to 293.17 billion rupees, ahead of analysts’ forecast of 287.85 billion rupees.
Shares of the company hit an intraday high after results and closed 2.3% higher.
For detailed earnings highlights, click (Full story).
KEY CONTEXT
European car sales have been affected due to competition from China, the uncertainty around a 25% U.S.
import tariff, and high costs.
Samvardhana Motherson counts German auto majors such as Mercedes-Benz, Volkswagen, Audi and BMW among its top customers in Europe.
Earlier this month, peer Sona BLW reported a 10.4% quarterly profit rise on strong order book, but flagged a negative impact from the U.S.
tariffs on short-term demand in the global auto industry.
PEER COMPARISON
Valuation (next 12 Estimates (next 12 Analysts’ sentiment
months) months)
RIC PE EV/EBITDA Revenue Profit Mean No.
of Stock to Div
growth (%) growth (%) rating* analyst price yield
s target** (%)
Samvardhana 22.37 9.39 7.82 26.05 Buy 21 0.94 0.34
Motherson
International
Bosch 40.17 32.72 11.05 13.35 Hold 4 1.10 1.15
UNO Minda 46.68 25.38 18.47 27.35 Buy 16 0.90 0.22
Sona BLW Precision 41.73 25.20 25.13 17.35 Buy 16 0.98 0.59
Forgings
* 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
JANUARY-MARCH STOCK PERFORMANCE
— All data from LSEG
— $1 = 85.4620 Indian rupees
(Reporting by Manvi Pant in Bengaluru; Editing by Harikrishnan Nair)
