SAMIL shares rise on bonus issue, dividend, Q4 results, fund raising; key details

Shares of Samvardhana Motherson International Ltd (SAMIL) climbed 4 per cent in Thursday's trade even as the company reported a fall in the March quarter profit, as the company said had positive discussions with its customers for passthrough of any tariff-related charges. Along with its results, SAMIL declared a dividend, announced bonus shares in the 1:2 ratio and also recommended raising of funds via non-convertible debentures (NCDs).   

SAMIL said its net profit fell 23.43 to Rs 1,050.50 crore from Rs 1,372 crore YoY. Sales were up 8.34 per cent at Rs 29,317 crore against Rs 27,058 crore YoY. 

The SAMIL board approved bonus shares in the ratio of 1:2, i.e. 1 equity share as bonus share for every 2 existing equity shares, subject to approval of shareholders through postal ballot. 

In addition to this, the company board has given an in-principle approval for issuance of rated, listed, unsecured, redeemable, non-convertible debentures of face value of Rs 1,00,000/- for an aggregate principal amount of up to Rs 8,500 crore on a private placement basis, in one or more series / tranches to certain eligible investors permitted to invest in the NCDs under applicable laws.

Also, the company board declared a final dividend of Re 0.35/- per equity share for FY25, subject to approval of shareholders at the ensuing Annual General Meeting (AGM) scheduled to be held on August 28.

The stock rose 4.59 per cent from day's low of Rs 147 to Rs 153.75 apiece. 

The company said it was outpacing the industry by 15 per cent growth, supported by content growth and M&As. The company said its ROCE stood at 17.2 per cent at a consolidated level, despite expansions, M&A payouts and industry headwinds. Net Debt to Ebitda stood at 0.9x. 

Capex for the year stood at Rs 4,433 crore. The company said it spent calibrated as per market dynamics without compromising on growth-related spends. A total of 14 greenfields under various stages of completion, 9 Greenfields to come onstream during FY26.

SAMIl said a majority of the impact from trade barriers is mitigated by being US MCA compliant, adding that it has positive discussions with customers for passthrough of tariff-related charges.

Vivek Chaand Sehgal, Chairman at Samvardhana Motherson International, said, his company's performance demonstrated the resilience and adaptability of the business. 

"Leveraging our strong engineering and manufacturing expertise, we are well-equipped to meet our customers' needs, positioning us for long-term sustainable growth. Our booked business value of $88-plus billion, which also encompasses non-automotive businesses, sets a strong foundation for a bright future." 

"The company managed to achieve the highest ever sales outpacing the automotive industry by building several new facilities, integrating record number of acquisitions (23), entering new industries successfully, all while exceeding customer expectations on quality (receiving multiple awards globally); yet retaining focus on free cash flow and bringing the leverage ratio to the lowest level in the five year period," he said.