Motherson (MOTHERSUMI) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 revenue grew 8% year-over-year to INR 27,666 crore, with PAT up 20% to INR 879 crore, reflecting resilience amid global automotive production declines and improved leverage ratio at 0.9, the lowest in a decade.

• Diversified business model, recent acquisitions, and customer support enabled strong performance and profitability.

• Consumer Electronics business operationalized, with significant ramp-up expected in the next quarter.

• Net profit attributable to owners for the quarter was ₹878.63 crore, up from ₹541.96 crore in the prior year quarter.

• Capex guidance reduced by INR 500 crore to INR 4,500 crore for FY25, aligning with market dynamics.

Financial highlights

• Q3 FY25 revenue reached INR 27,666 crore, up 8% year-over-year; EBITDA rose 13% to INR 2,776 crore; PAT up 20% to INR 879 crore.

• 9MFY25 revenue up 18% year-over-year to INR 84,346 crore; normalized EBITDA up 25% to INR 8,024 crore; normalized PAT up 47% to INR 2,620 crore.

• EBITDA margin stood at 10% for the quarter, driven by operational and cost control measures.

• Net debt reduced to INR 10,500 crore from INR 11,500 crore in September 2024.

• Q3 FY25 includes INR 2,237 crore revenue from newly acquired assets.

Outlook and guidance

• Anticipates sharp ramp-up in Consumer Electronics and emerging businesses in upcoming quarters.

• CapEx guidance for FY25 reduced to INR 4,500 crore ±5% from earlier INR 5,000 crore ±5%, mainly due to lower production levels and delayed SOPs.

• Full impact of interest cost reduction expected from Q4 onwards.

• Three new greenfield plants for emerging businesses expected to come online in the next two quarters.

• Proceeds from QIP and CCDs fully utilized for debt repayment and corporate purposes.