Motherson (MOTHERSUMI) Q2 24/25 earnings summary

Executive summary

• Delivered resilient Q2 FY25 performance with revenue up 18% year-over-year, supported by diversification, M&A, and operational efficiencies despite subdued automotive production and macro challenges.

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

• Non-automotive businesses, including consumer electronics and aerospace, are ramping up and expected to drive future growth.

• Net profit attributable to owners for Q2 FY25 was ₹879.74 crore, up from ₹201.55 crore in Q2 FY24.

• Continued focus on deleveraging, operational efficiency, and increased customer penetration.

Financial highlights

• Q2 FY25 revenue reached INR 27,812 crore, up 18% year-over-year; H1 FY25 revenue was INR 56,680 crore, up 23% year-over-year.

• Reported EBITDA for Q2 FY25 was INR 2,641 crore, with normalized EBITDA at INR 2,463 crore; Q2 EBITDA margin was 9.5%.

• Q2 FY25 normalized PAT was INR 747 crore, up 66% year-over-year; reported PAT (consolidated share) was INR 880 crore.

• One-time fair valuation gain of INR 178 crore in Q2 FY25 from acquisition activities, excluded from normalized EBITDA and PAT.

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

Outlook and guidance

• Expect H2 FY25 to outperform H1, with margin improvement as upfront costs subside.

• CapEx guidance for FY25 recalibrated to INR 5,000 crore ±5%, maintaining discipline 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 provides strong revenue visibility for the next 5-6 years.