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.Indian auto parts maker Samvardhana Motherson International reported a smaller-than-expected increase in second-quarter 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 four-fold to 8.8 billion rupees (USD 104.27 million) for the three months ended September 30.
However, that missed analysts' 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 July-September 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 analysts' 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 company's earnings before interest, taxes, depreciation, and amortization (EBITDA) margin was 8.9%, up from 8.5% in the year-ago quarter but down from 9.6% in the previous quarter.
Samvardhana's shares closed about 5% lower after the company reported its quarterly results.
