Updated 29 May 2025 at 15:44 IST
Samvardhana Motherson Q4 Results 2025: Shares of Samvardhana Motherson International Ltd (SAMIL) rose by 2.59% to Rs 152.60 after the company announced strong Q4 FY25 results and multiple positive updates for investors.
The company's net profit for the January–March 2025 quarter rose to Rs 1,050.50 crore, up 19.6% from Rs 878.63 crore in the same period last year.
Revenue from operations also increased by 6% to Rs 29,316.83 crore. The rise in profit came despite a 6.6% increase in total expenses, which stood at Rs 28,313.25 crore.
SAMIL, an auto component maker, continues to grow faster than the industry, outperforming it by around 15%, supported by content growth and mergers and acquisitions.
The company also reported a return on capital employed (ROCE) of 17.2% at the consolidated level, reflecting strong operational efficiency even in a challenging environment.
The company maintains a healthy Net Debt to EBITDA ratio of 0.9x, suggesting a comfortable financial position. It spent Rs 4,433 crore in capital expenditure during FY25, investing carefully without slowing down its growth plans.
Currently, 14 new manufacturing units (Greenfield projects) are in progress, with 9 expected to go live in FY26.
Looking ahead, SAMIL has a robust order book with over $88 billion (Rs 7.4 lakh crore approx) worth of booked business, and it is seeing growth not only in the auto sector but also in non-automotive segments. The company’s global-local strategy and efforts to reduce the impact of trade barriers, by being US MCA-compliant, are also helping it maintain momentum.
To reward shareholders, the company has declared a final dividend of Rs 0.35 per share, in addition to the interim dividend of Rs 0.50 per share already paid for FY25.
The final dividend is subject to shareholder approval at the AGM on August 28, 2025, and will be paid by September 26, 2025, to shareholders holding the stock as of the record date, June 23, 2025.
In another major announcement, SAMIL approved the issuance of bonus shares in the ratio of 1:2, meaning shareholders will receive one free share for every two they own, subject to shareholder approval via postal ballot.
The board has also given in-principle approval to raise to Rs 8,500 crore through non-convertible debentures (NCDs) on a private placement basis to support future growth and investments.
Published 29 May 2025 at 15:28 IST