Samvardhana Motherson International Limited (SAMIL) is one of the largest and fastest-growing automotive OEM suppliers in the world. It is a diversified global manufacturing expert and is one of the top 25 global automotive suppliers.
The company has a 24 percent global market share in the manufacture of exterior mirrors for passenger cars, commercial vehicles, and heavy trucks and is a leading specialist in the automotive industry for camera-based sensing systems. The Group is also India’s biggest manufacturer of wire harnesses for passenger automobiles, with a 40% market share.
It is a Large-cap company with a market capitalization of Rs 58,345 crore. The company’s shares were trading at Rs 86.10 apiece on July 3.
The company derives around 60% of its sales from the passenger vehicle market, with the remaining 40% split between two-wheelers, commercial vehicles, and off-road vehicles.
Samvardhana Motherson International is undergoing substantial diversification in the current fiscal year, consequently, the business plans to invest Rs 3,000 crore in capital expenditure this year, representing a 40 percent increase. The total order book was estimated at US$ 70 billion (about Rs 5.7 lakh crore), of which 20% of orders were only for the electric vehicle segment.
According to financials, operational revenue climbed by 24% from Rs 63,536 crore in FY 21-22 to Rs 78,700 crore in FY 22-23, while net profit increased by 114% from Rs 801 crore to Rs 1,713 crore over the same time. Similarly, a 310 percent net margin was stated.
The profitability ratios for FY23 were 6.66 percent ROE and 9.69 percent ROCE. According to the shareholding pattern, the company’s promoters hold a 64.77 percent stake, FIIs own 10.87 percent, and DIIs own 14.8 percent.
Beginning of the fiscal year 2023, Samvardhana Motherson Automotive Systems Group B.V., a step-down subsidiary of Samvardhana Motherson International, signed an agreement to acquire 100 percent ownership in SAS Autosystemtechnik GmbH, Germany, from Faurecia, a FORVIA Group firm, for €540 million.
Written by Omkar Chitnis
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