MOTHERSONNSEfinancial year 2025June 05, 2025

Samvardhana Motherson International Limited

7,720words
66turns
9analyst exchanges
1executives
Management on call
Sehgal. Vivek Chaand Sehgal
Thank you. Good evening, ladies and gentlemen. Thank you for joining the SAMIL
Key numbers — 40 extracted
INR 1,000
of Motherson. We have come a long way, where my mother and me started the business in 1975 with INR 1,000 and today, to over INR 1.13 lakh crores on a net basis or 25.7 billion on a gross basis for financ
INR 1.13 lakh crore
a long way, where my mother and me started the business in 1975 with INR 1,000 and today, to over INR 1.13 lakh crores on a net basis or 25.7 billion on a gross basis for financial year '25. To tell you, INR 1,000 i
25.7 billion
d the business in 1975 with INR 1,000 and today, to over INR 1.13 lakh crores on a net basis or 25.7 billion on a gross basis for financial year '25. To tell you, INR 1,000 in India goes a long way if reinv
INR 113,600 crore
on has delivered its best-ever performance to date, reporting full-year revenues of approximately INR 113,600 crores, an increase of 15% year-on-year. EBITDA rose by 17% to INR 10,877 crores, while profit after
15%
ormance to date, reporting full-year revenues of approximately INR 113,600 crores, an increase of 15% year-on-year. EBITDA rose by 17% to INR 10,877 crores, while profit after tax, our concerned shar
17%
ear revenues of approximately INR 113,600 crores, an increase of 15% year-on-year. EBITDA rose by 17% to INR 10,877 crores, while profit after tax, our concerned share is up 40% to INR 3,803 crores c
INR 10,877 crore
enues of approximately INR 113,600 crores, an increase of 15% year-on-year. EBITDA rose by 17% to INR 10,877 crores, while profit after tax, our concerned share is up 40% to INR 3,803 crores compared to FY '24.
40%
-year. EBITDA rose by 17% to INR 10,877 crores, while profit after tax, our concerned share is up 40% to INR 3,803 crores compared to FY '24. This performance has come
INR 3,803 crore
EBITDA rose by 17% to INR 10,877 crores, while profit after tax, our concerned share is up 40% to INR 3,803 crores compared to FY '24. This performance has come in a challenging p
19%
s model, and you can see more of this on Slide 4. In this period, we have grown revenues at about 19% CAGR, EBITDA at 21% CAGR and PAT concerned share at 68% CAGR. Needless to say, all this in a pe
21%
see more of this on Slide 4. In this period, we have grown revenues at about 19% CAGR, EBITDA at 21% CAGR and PAT concerned share at 68% CAGR. Needless to say, all this in a period which saw every
68%
period, we have grown revenues at about 19% CAGR, EBITDA at 21% CAGR and PAT concerned share at 68% CAGR. Needless to say, all this in a period which saw every possible type of uncertainty and vo
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Guidance — 20 items
Vivek Chaand Sehgal
opening
“In this period, we have grown revenues at about 19% CAGR, EBITDA at 21% CAGR and PAT concerned share at 68% CAGR.”
Vivek Chaand Sehgal
opening
“We have already announced a series of transformative measures in Western and Central Europe to breathe with the market, enabling a cost block optimization of approximately EUR 50 million, which we hope to be realized over the next couple of years.”
Vivek Chaand Sehgal
opening
“Consumer electronics is having a very rapid ramp-up and is on track to reach a capacity of 15 to 17 million units by the end of FY '26.”
Vivek Chaand Sehgal
opening
“Looking at all these new developments, our capex guidance for the next year and including for our existing business is about INR 6,000 crores plus or minus 10%.”
Vivek Chaand Sehgal
opening
“I have with me on the call, Pankaj sir, Kunal and Rajat, who will be happy to take your questions now.”
Binay
qa
“But they're a mix of all the other businesses, and we expect this to grow even further in the coming quarters.”
Binay
qa
“No, we hope to see these products at your Motherson Investor Day, which you usually hold every once in 5 years.”
Kunal Malani
qa
“Keeping that in mind, in April, we would have seen we have also announced a transformative plan to target around about 50 million of costs.”
Kunal Malani
qa
“And in the next couple of years, we should be able to target that cost and reduce that piece as well.”
Raghu Nandhan
qa
“On the global situation, over the medium term, how do you see the shifts happening in the supply chain?”
Risks & concerns — 7 flagged
I'm pleased to announce that the Board congratulated the Motherson team for an exceptional performance over the 5-year period despite numerous challenges in a very, very volatile world.
— Vivek Chaand Sehgal
These structural changes, while volatile in the short term, are also throwing up new opportunities such as reshoring of RFQ packages.
— Vivek Chaand Sehgal
Definitely, that was a place where we had the maximum pressure because of course, the customer mix over there is still figuring out that their program launches.
— Raghu Nandhan
We saw around about 8% or 9% decline in the automotive production, which meant the volume throughput was somewhat limited in the European market, which was the largest part of the business in MPP.
— Kunal Malani
Look, it is difficult to really say it for certain.
— Kunal Malani
But when I look at the,India there has been some pressure on the India piece.
— Gunjan Prithyani
Generally, that industry has been under pressure, right, commercial vehicle.
— Gunjan Prithyani
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Q&A — 9 exchanges
Q
Congrats on the performance in a very challenging environment. My first question is on the presentation on Slide 24, you've given $2.7 billion of non-auto order book. And then in other slides, we've given $1.3 billion is coming from aerospace. So could you share where is this remaining $1.4 billion coming from? Is it consumer electronics or which business is this? Laksh Vaaman Sehgal: Yes. This is Vaaman here. It's coming from all of the others. Of course, consumer electronics is also growing at a fast pace because we already have those plants at operational plus we said that the additional pl
Binay
And is it fair to look at the remaining $1.4 billion revenue because we've increased -- we've added another plant in the consumer electronics business this time. So we increased the plant over there. So is it fair to say that you sort of have some revenue estimate of those plants added in this order book? Laksh Vaaman Sehgal: Yes, but still more to come. As you know that the order book of that business is generally small. Consumer electronics business is only about 6 months to 1 year at max. So once the plant is up and ready, you will see a lot more of those -- that order book come in because
Q
Congrats on strong performance in challenging times. Firstly, to Kunal sir, first on the module and polymer business, cost seems to have increased Y-o-Y and Q-o-Q? Any cost pressures you would like to call out? Was there any one-offs? Laksh Vaaman Sehgal: This is Vaaman here. Definitely, that was a place where we had the maximum pressure because of course, the customer mix over there is still figuring out that their program launches. We did have some issues and launches as well, which we have now taken care of and they're all behind us. So definitely, this was one place that we look back and s
Kunal Malani
Look, if I might add, the European market in the last quarter was obviously going through some amount of production realignment. We saw around about 8% or 9% decline in the automotive production, which meant the volume throughput was somewhat limited in the European market, which was the largest part of the business in MPP. And hence, the cost looks elevated on that account as well. Keeping that in mind, in April, we would have seen we have also announced a transformative plan to target around about 50 million of costs. A lot of that is part of this division as well. And in the next couple of
Q
First of all, congratulations on a very strong performance in the 5-year plan and look forward to meeting you for the next one. My question is on the modules and polymer products division. You mentioned there were some challenges. But given that we are in turbulent times and there have been tariffs-related issues as well, just want to understand whether it was Q4 that faced most of those challenges? And what should be the starting point for us to look at the margins of this division? Would it put the annual margin to the right benchmark? Or -- because the presentation also talks about some inh
Kapil Singh
That's quite helpful. The second question is on the acquisition opportunities. Given this environment, we are seeing many companies facing challenges and we've historically been good in taking these opportunities. Given the current scenario, how you think about the acquisition opportunity and the landscape over there? Will there be any new considerations that you will take into account besides the usual one that you do? I ask this because of the changes in cost structures which are taking place and also the changes in supply chain. So just some - - I know you can't talk about specific opportun
Q
My first question was that now that fiscal '25 has ended and we are at the end of the last 5-year plan, any initial thoughts for Vision 2030, the broad areas that we should be looking at, what are you thinking about over the next 5-year horizon? Vivek Chaand Sehgal: Amyn, we are not thinking. We already know what it is. And Motherson works in a way that by December of 2024, fourth -- fifth year last quarter, the whole group had already worked together as to what the number will be for the next 5 years. And we are going to inaugurate that number where, Vaaman? Laksh Vaaman Sehgal: We are going
Vivek Chaand Sehgal
If I give them a number, they'll have a small heart attack. So I mean if you're up to it, I can tell you the number. But I think the details on all this is -- will probably be best served if we give you around, I think, August or -- October, November I think this year when the investor conference will be held. At this time, we are wanting to hold the conference in Bombay, I think, to make it easier for most of them. So we'll probably hire a football team or something. Okay. The number of all the groups and everything put together, we are targeting for 2030 will be US$108 billion on the top lin
Q
A couple of questions. First is, we have taken approval for raising debt of INR 8,500 crores. So can you talk about that? What are the applications which you're looking for that?
Kunal Malani
Look, this is once a year, we take it. It's on an estimated basis. It's not that there is something getting planned imminently. It's an in-principle approval that has been sought from the Board. And obviously, when we do raise it, you will hear about all the details, including the use of proceeds and so on. Got it. And secondly, the consumer electronics business including the Phase 1, which is operational, are we thinking about the applying for PLI for electronic components? Are we eligible for that? Yes. We are eligible for that, including some of the SPAC-related, which are special -- especi
Q
Just a couple of follow-up questions. On the consumer electronics business, is it possible to share all the INR 2,600 crores number that you had given on CAPEX commitment, how much of it has been done in fiscal '25? And also this INR 6,000 crores, which we again have given that non-automotive would be 50%, so is it possible to break that further and give some sense on how much goes towards consumer electronics?
Kunal Malani
Look, in the period March '25, I think we have done around about INR 900 crores to INR 1,000 crores out of the INR 2,600 crores. So part of that obviously flows into the '26 capex guidance. And then you are seeing some of the other pieces, which are semiconductor linked some of the PCBA pieces, some of the medical pieces, which are all in the works right now, new aerospace facility coming in, which are all part of the non-automotive part of the group. And so fiscal '26, I mean how big this INR 1,000 crore could get to, like we end up spending the entire INR 2,600 crores within F '26 itself? Lo
Q
Sir, if you could just break up the organic and inorganic revenue for quarter 4 financial year '25 and for the full year?
Kunal Malani
For the full year, on the inorganic side, we have done around about INR 8,500 crores. This is there on Slide 10 of the presentation. I think if you look at it from a year-on-year basis for the 12 months, we would have grown organically around 7% or 8%. And if I look at it on a quarter-on-quarter basis, then it will probably be flattish on the organic side.
Q
Based on gross revenues, which currently...
Management
Q
This question is for Sehgal Senior. You talked about 5-year Vision 2030 destination, I mean. Is the $108 billion of revenues, which you talked about, is it based on gross revenues, which currently as on FY '25 was around $26 billion? Or is it based on reported net revenue, which is around US$13-odd billion? Vivek Chaand Sehgal: Very good question. I had already requested that we are not wanting to give more details. But normally, we go on gross revenue. That's because many different countries, many different taxi and all that. So we follow a number which is gross, and that's how you should loo
Pankaj
Sure, sir. So it means 4x -- around 4x to 5x in the next 5 years? Well, thank you and good luck for the same. Vivek Chaand Sehgal: Sir, we are on the seventh 5-year plan, and we have started from what 12 crores to 100 crores, 100 crores to 200 crores, 200 crores to 10,000 crores, 10,000 crores to 1 billion, 1 billion to 5 billion, 5 billion to 18 billion, which we didn't do because of COVID. And then that time, we did about 9 billion, and now we're at about 26 billion. But this 5-year plan, just keep in the mind that we have lost almost 3 years because of COVID and related problems. And so we
Speaking time
Kunal Malani
15
Moderator
12
Gunjan Prithyani
8
Jinesh Gandhi
6
Vivek Chaand Sehgal
5
Binay
4
Kapil Singh
4
Raghu Nandhan
3
Amyn Pirani
3
Pankaj
3
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Opening remarks
Vivek Chaand Sehgal
Thank you. Good evening, ladies and gentlemen. Thank you for joining the SAMIL results conference call. I'm pleased to announce that the board has approved the results for the quarter 4 and the full year of financial year 2025. First, I'm thrilled with great joy and pride to highlight that this marks our 50th anniversary of Motherson. We have come a long way, where my mother and me started the business in 1975 with INR 1,000 and today, to over INR 1.13 lakh crores on a net basis or 25.7 billion on a gross basis for financial year '25. To tell you, INR 1,000 in India goes a long way if reinvested. To commemorate this special occasion, the board has recommended a bonus issue in the ratio of 1:2. That is, one bonus equity share for every two equity shares held. On behalf of the company, I would like to express my gratitude to you, the entire shareholder community for your confidence in Motherson. We should also like to thank our customers for their trust and continuous support. We also ex
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