Samvardhana Motherson Q2 Results Review - Strong Execution In A Challenging Environment: ICICI Securities
Reported its all-time high quarterly revenue at Rs 183 billion in challenging market conditions amid chip-supply issues etc.
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ICICI Securities Report
Samvardhana Motherson International Ltd.’s Q2 FY23 Ebitda margin at 7.7%, up 160 basis points QoQ, was a positive surprise led by 180 bps QoQ reduction in manpower cost, as start-up cost for new facilities was included in the base of Q1 FY23.
Samvardhana Motherson reported its all-time high quarterly revenue at Rs 183 billion in challenging market conditions amid chip-supply issues, European geopolitical challenges and China lockdown impacting demand.
Samvardhana Motherson’s continued focus on new electronic vehicle solutions (high-voltage wiring harness, telematics and brushless DC electric motors for e-two-wheelers) is visible in its orderbook with 37% share from EVs (27% in FY22-end).
With easing chip supply, input costs cooling off, gradual cost pass-through amidst geopolitical tensions easing off, we expect the company's margins to rise to more than 9% levels by FY24E.
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