Samvardhana Motherson Q4 FY25 Results: Revenue Grows 8% YoY, Net Profit Down 23%, Announces Bonus & Dividend
📝 Introduction
Samvardhana Motherson International Ltd. (SAMIL), a global auto components giant, has reported its Q4 FY25 results showing mixed performance. While revenue saw healthy year-on-year growth, profit margins remained under pressure. The company announced a bonus share issue, final dividend, and major fundraising plans, demonstrating strong capital allocation discipline amid global macro uncertainties.
📌 Financial Highlights
| Metric | Q4 FY25 | Q3 FY25 | Q4 FY24 | QoQ Change | YoY Change |
|---|---|---|---|---|---|
| Revenue | ₹29,317 Cr | ₹27,666 Cr | ₹27,058 Cr | 6.00% | 8.30% |
| Expenses | ₹26,674 Cr | ₹24,980 Cr | ₹24,124 Cr | 6.80% | 10.60% |
| Operating Profit (EBIT) | ₹2,643 Cr | ₹2,686 Cr | ₹2,935 Cr | -1.60% | -10.00% |
| EBITDA | ₹2,643 Cr | ₹2,686 Cr | ₹2,935 Cr | ↓ | ↓ |
| Profit Before Tax | ₹1,252 Cr | ₹1,322 Cr | ₹1,557 Cr | -5.30% | -19.60% |
| Net Profit | ₹1,115 Cr | ₹984 Cr | ₹1,444 Cr | 13.30% | -22.70% |
💰 Dividend Announcement
- Final Dividend Declared: ₹0.35 per equity share (Face value: ₹1)
- Record Date: June 23, 2025
- Interim Dividend Already Paid: ₹0.50 per share
- Total Dividend for FY25: ₹0.85 per share
- Bonus Issue: 1:2 (One bonus share for every two shares held), subject to AGM approval
📉 Key Financial Ratios
| Ratio | Q4 FY25 | Q3 FY25 | Q4 FY24 | QoQ Change | YoY Change |
|---|---|---|---|---|---|
| Operating Profit Margin | 9% | 10% | 11% | -100 bps | -200 bps |
| Net Profit Margin | 3.80% | 3.60% | 5.30% | +20 bps | -150 bps |
| EPS (₹) | 1.49 | 1.25 | 2.02 | 19.20% | -26.20% |
🏁 Peer Comparison
| S.No. | Name | CMP Rs. | Mar Cap Rs.Cr. | P/E | CMP / BV | ROE % | ROCE % | 52w High Rs. | 52w Low Rs. |
|---|---|---|---|---|---|---|---|---|---|
| 1 | Samvardh. Mothe. | 153.12 | 107739.75 | 28.33 | 3.09 | 12.46 | 13.94 | 217 | 107.25 |
| 2 | Bosch | 31415 | 92654.27 | 46.04 | 6.71 | 15.55 | 21.11 | 39088.8 | 25921.6 |
| 3 | Schaeffler India | 4188.7 | 65470.92 | 64.48 | 12.16 | 19.17 | 25.67 | 4951 | 2823 |
| 4 | Bharat Forge | 1240.9 | 59326.02 | 58.9 | 6.41 | 12.27 | 13.09 | 1826.2 | 919.1 |
| 5 | Tube Investments | 3062.1 | 59249.76 | 87.36 | 10.7 | 12.75 | 21.55 | 4810.8 | 2400.05 |
| 6 | Uno Minda | 1006.65 | 57798.2 | 61.69 | 10.09 | 17.56 | 18.88 | 1255 | 767.6 |
| 7 | Endurance Tech. | 2431.8 | 34206.39 | 41.36 | 5.98 | 15.47 | 18.21 | 3061.3 | 1555.65 |
🧭 Strategic Developments
- ✅ 14 Greenfield Projects in pipeline; 9 expected to go live in FY26
- ✅ USD 88 Billion Booked Business Value; diversified revenue streams
- ✅ Continued M&A and expansion into non-auto verticals
- ✅ Fundraising Approval: ₹8,500 Cr via NCDs (non-convertible debentures)
- ✅ Managing trade risks through tariff collaborations under USMCA
✅ Positives & ❌ Negatives
✅ Positives This Quarter:
- Revenue growth of 8% YoY and 6% QoQ
- Strong order book and expanding global footprint
- Positive market reaction (+2.29% stock price)
- Announced bonus issue and final dividend
- Comfortable debt position (Net Debt/EBITDA: 0.9x)
❌ Negatives / Challenges:
- Net profit decline of 23% YoY
- Operating margin compression (down 200 bps YoY)
- Higher operating expenses pressuring profitability
- EBITDA slightly below analyst estimates
📈 Market Reaction & Street View
- Stock Performance: Rose 2.29% post-results to ₹152
- Analyst View:
- Motilal Oswal: Retains Buy, target revised to ₹172
- ICICI Securities: Add, sees value in long-term EV diversification
- Kotak Institutional Equities: Reduce, concerned over margin erosion
🔮 Final Outlook
Samvardhana Motherson continues to display strong topline growth supported by strategic diversification and global expansion. However, declining margins and elevated costs remain near-term hurdles. The announced bonus, dividend, and large capex commitment underscore management’s confidence. Long-term prospects remain promising given the robust order book and de-risked revenue profile.
🔗 External Links
For detailed financials and official updates, visit: Samvardhana Motherson Official Website
⚠️ Disclaimer
This summary is based on publicly available information from official filings, press releases, and financial news sources. It is provided for informational purposes only and does not constitute financial advice, investment recommendation, or an offer to buy or sell any securities. Readers are advised to conduct their own research or consult with a qualified financial advisor before making any investment decisions. Read the Disclaimer page for more details.