Motherson (MOTHERSUMI) Q1 24/25 earnings summary

Executive summary

• Quarterly revenue reached INR 28,900 crore (₹28,867.96 crore), up 29% year-over-year, with EBITDA at INR 2,785 crore (₹2,785.40 crore) and PAT at INR 994 crore, up 65%.

• Growth was driven by both organic expansion and completed, margin-accretive M&A, with all announced acquisitions closed and integrated.

• Diversification into non-automotive sectors, including aerospace and consumer electronics, is gaining traction.

• The company remains powertrain-neutral, benefiting from both ICE and EV programs amid flat global light vehicle production.

• Profitability improved due to scale benefits and successful integration of acquisitions, despite muted industry volume growth.

Financial highlights

• Q1FY25 revenue: INR 28,900 crore (₹28,867.96 crore), EBITDA: INR 2,785 crore (₹2,785.40 crore), PAT: INR 994 crore, all up significantly year-over-year.

• EBITDA margin improved to 9.6% in Q1FY25 from 8.6% in Q1FY24.

• Raw material cost to revenue reduced by 290 bps year-over-year, driven by business mix, repricing, and commodity pass-through.

• Net leverage ratio at quarter-end was 1.5x, reflecting financial discipline.

• CapEx for the quarter was INR 1,078 crore, with guidance maintained at INR 5,000 crore ±10%.

Outlook and guidance

• CapEx guidance remains at INR 5,000 crore ±10%, with ongoing reassessment due to expanded business perimeter.

• Working capital is expected to normalize in the second half of FY 2025.

• The company targets 40% ROCE and INR 36 billion for FY 2025, with further growth expected as new businesses ramp up.

• Announced mid-term target of 50% reduction in emissions by 2030.

• Management remains optimistic about achieving five-year plan targets despite macroeconomic challenges.