(Reuters) – Indian auto components maker Samvardhana Motherson International reported a smaller-than-expected enhance in second-quarter revenue on Tuesday, harm by slower demand.
The firm, which provides Maruti Suzuki, Mercedes Benz, Audi and different automakers, mentioned consolidated internet revenue rose over four-fold to eight.8 billion rupees ($104.27 million) for the three months ended Sept. 30.
However, that missed analysts’ common estimate of 9.15 billion rupees, in line with information compiled by LSEG.
Indian automakers reported a decline in shipments to sellers for the primary time in additional than two years in the course of the July-September quarter, to assist handle the surplus stock.
This impacted corporations similar to Samvardhana Motherson, which makes merchandise like bumpers and mirrors for autos and generates 75% of its income from the car business.
Its whole income from operations of 278.12 billion rupees within the quarter additionally missed analysts’ estimates of 281.88 billion rupees, whereas the 18.2% progress charge was slower than the 28.3% charge in the identical interval a yr in the past.
Cost of uncooked supplies and providers, a significant chunk of the whole bills, jumped 10.7%, pushing whole bills up by 18% to 270.13 billion rupees.
The firm’s earnings earlier than curiosity, taxes, depreciation, and amortization (EBITDA) margin was 8.9%, up from 8.5% within the year-ago quarter however down from 9.6% within the earlier quarter.
Samvardhana’s shares closed about 5% decrease after the corporate reported its quarterly outcomes. ($1 = 84.3975 Indian rupees)
(Reporting by Meenakshi Maidas in Bengaluru; Editing by Sumana Nandy; Editing by Savio D’Souza)
