Motherson (MOTHERSUMI) Q2 24/25 earnings summary

Executive summary

• Delivered resilient Q2 FY25 performance with consolidated revenue of ₹27,811.86 crore, up 18% year-over-year, despite subdued automotive production and macro challenges.

• Net profit attributable to owners for Q2 FY25 was ₹879.74 crore, up 336% year-over-year, with normalized PAT at ₹747 crore (+66% YoY).

• Growth was driven by diversification, M&A, and operational efficiencies, with organic business outpacing the market by 4-5%.

• Automotive order book stands at $88 billion, providing strong future revenue visibility for the next 5-6 years.

• Significant equity and debenture issuances raised over ₹6,438 crore via QIP and CCDs, supporting deleveraging and growth.

Financial highlights

• Q2 FY25 revenue reached INR 27,812 crore (+18% YoY); H1 FY25 revenue was INR 56,680 crore (+23% YoY).

• Q2 FY25 EBITDA was INR 2,641 crore (+32% YoY); normalized EBITDA at INR 2,463 crore (+23% YoY).

• Q2 FY25 consolidated PAT was INR 880 crore (+336% YoY); normalized PAT at INR 747 crore (+66% YoY).

• Net worth as of September 30, 2024, was ₹29,428.54 crore.

• Revenues from acquired assets rose to ₹6,199 crore in Q2 FY25 from ₹1,851 crore in Q2 FY24.

Outlook and guidance

• Expect H2 FY25 to outperform H1, with margin improvement as costs normalize and production ramps up.

• CapEx guidance for FY25 is INR 5,000 crore ±5%, unchanged despite new acquisitions.

• Eight more greenfield facilities expected to become operational in H2 FY25.

• Proceeds from recent capital raises are earmarked for debt repayment and general corporate purposes.

• Large booked automotive business, with 24% from EVs, provides strong revenue visibility.