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Samvardhana Motherson Share Price Fell 3.8% Despite Q3 FY25 Net Profit Jumps to ₹879 crore

Written by: Dev SethiaUpdated on: Feb 17, 2025, 4:15 PM IST
Samvardhana Motherson International's shares dropped 3.8% despite a 62% YoY profit increase to ₹879 crore in Q3 FY25, with acquisitions and joint ventures expanding its portfolio.
Samvardhana Motherson Share Price Fell 3.8% Despite Q3 FY25 Net Profit Jumps to ₹879 crore
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Samvardhana Motherson International’s shares fell 3.8% on Monday, February 17, reaching an intraday low of ₹121.35 on the Bombay Stock Exchange (BSE). The stock fell despite the company’s reported net profit of ₹879 crore in Q3 FY25.

Q3 FY25 Financial Performance

For the third quarter of FY25, the company posted a net profit of ₹879 crore, marking a 62% increase from ₹542 crore in the same quarter last year. Revenue from operations saw a nearly 8% year-on-year (YoY) rise, reaching ₹27,666 crore compared to ₹25,644 crore in Q3 FY24.

EBITDA improved to ₹2,776 crore, reflecting operational strength, while expenses grew by 7% to ₹26,559 crore. The company’s net profit margin expanded to 3.6% from 2.5% in the same period last year, signalling a notable improvement in profitability.

Acquisitions and Joint Ventures

During the quarter, Samvardhana Motherson International made strategic moves to expand and diversify its portfolio. The company acquired Japan-based Atsumitec and Brazilian auto component manufacturer Baldi Auto, a step aimed at enhancing its vertical integration.

Additionally, it formed joint ventures with Sanko and Matsui in Japan to strengthen its packaging segment under the logistics solutions division and to expand its footprint in process and industrial automation.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Published on: Feb 17, 2025, 11:20 AM IST

Dev Sethia

Dev is a content writer with over 2 years of experience at Business Today, Times of India, and Financial Express. He has also contributed stories in Hindi for BT Bazaar and Khalsa Bandhan News Paper. A journalism postgraduate from ACJ-Bloomberg, Dev enjoys spending his spare time on the cricket pitch.

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