Samvardhana Motherson Q2 Results Review - Inorganic Levers To Cushion Base Volumes: Yes Securities

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Yes Securities Report.Samvardhana Motherson International Ltd.'s Q2 FY25 missed our/street Ebitda estimates by ~11%/14%, led by weak revenue print (~4% miss) due to moderating global light vehicle demand coincided with low production activity due to summer holidays. Weak gross margins at 45.8% (estimate 46.4%-60bp QoQ) led consolidated margins at 8.8% (+40bp YoY/ -80bp QoQ, estimate 9.5%). Underlying revenue growth of ~18% YoY in Q2 FY25 was led by combination of organic and inorganic (~Rs 62 billion contribution in Q2 Rs 18.5 billion in YoY), significantly outpacing ~5% decline in global light vehicle volumes. All the sub segments grew by low single to double digit led by combination of content increase and integration of acquisitions such as Yachiyo, Ichikoh, AD industries and Dr. Schneider etc. among key ones. However, company did indicated challenges such as- soft production expected in Europe (LV and CV) and NA (CV) and delay in EV launches in Europe impacting production (negated by extended life of ICE platforms bode well for tech agnostic approach) to weigh on growth ahead..Click on the attachment to read the full report:.Hindalco Q2 Review- Near-Term Caution For Novelis; India Business Strengthens; Upgrade To 'Buy' Yes Securities.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Samvardhana Motherson Q2 Results Review - Inorganic Levers To Cushion Base Volumes: Yes Securities

Company's margins are likely to expand to ~10.6% by FY27E led by ready capacity to execute healthy orders, says the brokerage.

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Samvardhana Motherson Q2 Results Review - Inorganic Levers To Cushion Base Volumes: Yes Securities

Company's margins are likely to expand to ~10.6% by FY27E led by ready capacity to execute healthy orders, says the brokerage.

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