Samvardhana Motherson Q3 result: Profit rises 16.5% on strong auto demand | Company Results

Indian auto parts maker Samvardhana Motherson on Tuesday reported a 16.5 percent jump in quarterly profit, helped by steady demand from automakers as vehicle sales rose following recent tax cuts.

Profit rose to ₹1,024 billion ($113.13 million) in the quarter ended Dec. 31, from ₹879 billion a year ago.

The company reported a 14 per cent increase in revenue from operations to Rs 31,409 crore, driven by growth in wiring, electronics and diversified industrial segments.

Following the results, the company’s shares rose up to 6 percent.

Automobile sales in India increased thanks to the government’s comprehensive tax cuts in September.

Domestic auto sales are expected to rise to nearly 6 million units by the end of the decade, driven by rising demand for SUVs and premium vehicles, according to S&P Mobility data.

Samvardhana Motherson, which supplies parts to global automobile manufacturers including Volkswagen, BMW and Mercedes-Benz, is in a position to benefit from this change; because high-end vehicles need more complex wiring systems, modules and electronics, increasing the demand for auto parts.