Samvardh. Mothe.

SAMIL demonstrated exceptional resilience in Q3 FY'25, achieving 8% revenue growth while the global auto industry declined 1.2% (4.8% excluding China). The company's diversified business model across geographies, customers, and products provided cushion against regional volatilities. Performance was particularly notable given the challenging environment with transitional phase in clean mobility, shifting trade dynamics, and energy price pressures in Europe. The globally local strategy with manufacturing plants near customers minimized tariff exposure and enabled agile response to market changes.

The operationalization of the first consumer electronics plant in November 2024 marked a significant milestone for non-automotive diversification. While initial contribution was limited to one month in Q3, the business showed significant ramp-up in January 2025 with management describing the growth trajectory as 'Burj Khalifa kind of ride'. The JV partner's equity investment approval process is in final stages, expected to provide additional capital and strategic support. This business represents a key pillar of future growth beyond automotive markets.

The completion of Atsumitec acquisition strengthened Motherson's global footprint across 7 countries including new presence in Vietnam and Indonesia. With $412 million revenue and healthy 8% margin profile, Atsumitec brings in-house capabilities in heat treatment, carburising, and precision machining. The acquisition extends Honda collaboration and provides access to emerging markets growth opportunities. Complementary capabilities with existing operations in India and Mexico create global potential for customer expansion across industries.

Despite challenging market conditions, the company achieved impressive margin expansion in wiring harness business through operational optimization, in-sourcing initiatives, and favorable order mix. The team's relentless focus on productivity improvements, facility optimization, and human resource efficiency delivered sustainable benefits. In-sourcing multiple products provided dual benefits of cost reduction and enhanced customer solutions. These improvements demonstrate the organization's ability to extract value through operational excellence even in volatile environments.

Net leverage improved to 0.9x, reaching the lowest level in 10 years, reflecting robust balance sheet management despite significant growth investments. QIP proceeds were fully utilized for debt reduction with interest cost benefits flowing from Q4 onwards. ROCE improved to 18% from 17.3% in previous quarter, demonstrating efficient capital allocation. The strong financial position provides flexibility for pursuing large M&A opportunities with hot pipeline across automotive and non-automotive segments while maintaining disciplined approach to capital deployment.