Samvardhana Motherson's Resilient Adaptation Amid Profit Slump
Samvardhana Motherson International Ltd witnessed a 46% drop in first-quarter net profit, attributed to a volatile business environment. Despite this, the company achieved increased revenue and emphasized resilience and operational efficiencies. Challenges include industry headwinds, tariffs, and cost agreements, yet offer potential growth opportunities.
- Country:
- India
Samvardhana Motherson International Ltd announced a significant decline in its net profit for the first quarter of 2025, reporting a 46% decrease to Rs 606 crore. The company, a major player in auto components, faced a challenging business environment compared to Rs 1,115 crore in profit during the same period last year.
Despite these obstacles, the company saw a slight increase in revenue from operations, rising to Rs 30,212 crore from Rs 29,317 crore year-on-year. Chairman Vivek Chaand Sehgal highlighted the company's resilience and effective business model, which allowed it to weather persistent industry challenges.
Sehgal assured stakeholders that recent tariffs imposed on India have negligible impact on operations, and the company is preparing to adjust tariffs for non-USMCA-compliant products. He also pointed out that current uncertainties in the business landscape present opportunities for inorganic growth.
(With inputs from agencies.)
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