(Reuters) – Indian auto-parts maker Samvardhana Motherson reported a smaller-than-expected rise in third-quarter profit on Friday, hurt by weak global car sales.
The company’s consolidated profit rose to 8.79 billion rupees ($101 million) in the quarter ended December 31 but fell short of analysts’ estimate of 9.4 billion rupees, according to data compiled by LSEG.
Quarterly revenue increased 8%.
For detailed earnings highlights, click
KEY CONTEXT
Samvardhana Motherson is India’s top auto parts maker by market capitalisation and counts carmakers from Maruti Suzuki to Mercedes-Benz among its customers.
However, global car sales were down about 1% in the quarter, the company said. It was also hurt by a decline in margins at its top modules and polymers business to 8% from 8.8%.
Together, they offset gains the company had begun to reap from prior acquisitions, analysts said.
German auto majors Mercedes, Volkswagen, Audi and BMW are among the company’s top customers in Europe.
The company earns about half of its revenue from parts like bumpers and the rest from wiring harnesses, rear view mirrors, sunroofs and door and dashboard panels.
PEER COMPARISON
Estimates (next 12 Analysts’ sentiment
months)
RIC PE EV/EBI Revenue Profit Mean # of Stock to Div
TDA growth (%) growth rating* analyst price yield
(%) s target** (%)
Samvardhana 18.09 8.14 8.02 28.61 Buy 19 0.72 0.62
Motherson
International Ltd
Bosch Ltd 35.41 29.38 10.48 14.47 Hold 4 0.94 1.37
UNO Minda Ltd 45.20 24.93 18.38 24.91 Buy 16 0.83 0.24
Sona BLW Precision 39.45 23.19 28.95 36.83 Buy 16 0.80 0.62
Forgings Ltd
* Mean of analysts’ ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** Ratio of the stock’s last close to analysts’ mean price target; a ratio above 1 means the stock is trading above the PT
OCT-DEC STOCK PERFORMANCE
— All data from LSEG
— $1 = 86.7920 Indian rupees
(Reporting by Nandan Mandayam in Bengaluru; Editing by Eileen Soreng)
