Samvardhana Motherson International Limited — PPTs, 29-05-2025: Investor Presentation

**1. Financial Highlights:**

Samvardhana Motherson International reported revenue of Rs 113,663 Cr and EBITDA of Rs 10,877 Cr for the fiscal year, up 15% and 17% respectively. PAT surged 40% to Rs 3,803 Cr. Q4 posted revenues of Rs 29,317 Cr, EBITDA of Rs 2,675 Cr, and PAT of Rs 1,051 Cr. ROCE rose to 17.2%, reflecting efficient capital use despite elevated capex and industry headwinds. Net debt to EBITDA improved to 0.9x, supported by a focus on deleveraging. Working capital remains high due to inventory buildup amid trade uncertainties.

**2. Strategic Initiatives & Growth Drivers:**

FY25 capex totaled Rs 4,433 Cr, mainly for greenfield projects and capacity expansions in India, China, Mexico, UAE, and Poland. FY26 capex is guided around Rs 6,000 Cr (+/-10%), with about 70% directed toward non-automotive sectors. New projects include wiring harness, lighting & electronics, aerospace, and technology verticals, emphasizing diversification and vertical integration. Growth is driven by leveraging engineering capabilities in automotive and expanding into consumer electronics and semiconductors.

**3. Business Developments:**

Motherson took controlling stake in Motherson Auto Solutions, recording a one-time Rs 178 Cr valuation gain. Aerospace revenue nearly quintupled to Rs 1,749 Cr with EBITDA doubling to Rs 127 Cr, establishing Tier-1 supplier status for Airbus commercial aircraft. Consumer electronics capacity expanded with new facilities commissioned and others underway. Enhanced modular and integrated assemblies capabilities now offer bundled solutions strengthening customer value.

**4. Market Position & Competitive Advantage:**

A diversified global footprint with over half revenue from emerging markets supports resilience. EV components contribute 24% of automotive bookings. Motherson outpaced industry growth by around 15% through strong content expansion and M&A synergy. Its presence across wiring harnesses, vision systems, and aerospace components builds a competitive moat. Vertical integration and localization mitigate trade risks and enhance supply chain stability.

**5. Investor Implications:**

The company shows positive growth potential backed by solid execution, strategic capex, and diversified revenues. Elevated working capital and trade risks need monitoring but are offset by improving leverage and Rs ~9,300 Cr liquidity. Aerospace and consumer electronics expansions provide margin improvement opportunities. Key points to watch include capex execution and order uptake in emerging greenfield projects.