Nov 12 Reuters Indian auto parts maker Samvardhana Motherson International reported a smallerthanexpected increase in secondquarter profit on Tuesday, hurt by slower demand.
The company, which supplies Maruti Suzuki, Mercedes Benz, Audi and other automakers, said consolidated net profit rose over fourfold to 8.8 billion rupees 104.27 million for the three months ended Sept. 30.
However, that missed analysts39; average estimate of 9.15 billion rupees, according to data compiled by LSEG.
Indian automakers reported a decline in shipments to dealers for the first time in more than two years during the JulySeptember quarter, to help manage the excess inventory.
This impacted companies such as Samvardhana Motherson, which makes products like bumpers and mirrors for vehicles and generates 75 of its revenue from the automobile industry.
Its total revenue from operations of 278.12 billion rupees in the quarter also missed analysts39; estimates of 281.88 billion rupees, while the 18.2 growth rate was slower than the 28.3 rate in the same period a year ago.
Cost of raw materials and services, a major chunk of the total expenses, jumped 10.7, pushing total expenses up by 18 to 270.13 billion rupees.
The company39;s earnings before interest, taxes, depreciation, and amortization EBITDA margin was 8.9, up from 8.5 in the yearago quarter but down from 9.6 in the previous quarter.
Samvardhana39;s shares closed about 5 lower after the company reported its quarterly results.
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