Samvardhana Motherson posted its highest-ever revenues of over Rs 78,700 crore in FY23. Multiple tailwinds are helping the company clock strong growth, including healthy demand in key markets like Europe and North America, premiumisation, growing share of electric vehicles in the order book, etc. Kunal Malani, Chief Financial Officer, in an interaction with CNBC-TV18, said: "We should be able to clock better growth rate in FY24". The company's revenues grew 23 percent in FY23 to Rs 78,700 crore.

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The auto component maker reported strong performance in the fourth quarter of financial year 2022-23. Revenue grew 30 percent year on year to Rs 22,476 crore. The net profit from continuing operations jumped to Rs 699 crore from Rs 130 crore in the corresponding quarter of last year.

The company has successfully taken price hikes to combat the effects of inflation and hence was able to report a multi-quarters high 9 percent margin at the earnings before, interest, tax, depreciation and amortisation (EBITDA) level.

Of the Rs 5.7 lakh crore orders booked in FY23, 20 percent were contributed by electric vehicles. Since content per vehicle is higher in electric cars, the focus is on increasing the share of electric vehicles in the order book, said Pankaj Mittal, Chief Operating Officer at Samvardhana Motherson.

The global automotive supply chains are stabilising and volumes are recovering in key markets such as Europe, North America, and India. Although, volumes remain 20 percent below earlier highs in developed markets, which provides growth visibility for the company.

The company's net debt has reduced to Rs 7,474 crore on 31st March 2023, compared with Rs 8,442 crore on 31st Dec 2022 and Rs 7,768 crore on 31st March 2022. The auto component's focus is now on optimising its working capital and growing businesses acquired recently.

This year, the company plans to commence seven new greenfield projects (six in India including three for emerging businesses) to cater to market growth. Brokerage Emkay expects the seven transactions completion during FY23 to add Rs 110 crore net revenue going forward and be cash EPS accretive in due time.

The stock ended the day at Rs 80 per share with nil movement on the exchanges on May 29.

Also read: GMM Pfaudler Q4: Strong performance, On track to meet FY25 guidance