India’s largest automotive component firm, Samvardhana Motherson International (SAMIL) has revealed high spike rate in order book with the amount Rs 20,000 crore in just first six months of FY 2022-2023.
In the April-September period of FY23, SAMIL was sitting on an order book of Euro 6.7 billion or Rs 56, 356 crores, this is 55% higher than Euro 4.4 billion or Rs 36, 152 crore of order book it had in April to March of FY-22.
Even its cumulative order book including supplies for internal combustion engines has swelled to about Rs 1.5 lakh crore or Euro 18.2 billion at the end of September FY-23.
“The total order book during H1 FY23 amounts to Euro 18.2 billion at SMRP BV up from Euro 16.1 billion as on March 2022. Out of this, the share of EVs in the order book stood at 37 percent. At present we have booked a business of Euro 33.9 billion which is reflective of our strong technological capabilities,” Kunal Malani, Chief Financial Officer, SAMIL said during a conference call.
He also indicated that the EV order book size will continue to expand in the coming quarters as the automotive industry’s focus on sustainability is improving. Notably, the share of revenues from EVs has increased to more than 4% of the company’s overall revenues for FY22.
The share of EV business in its overall order book jumped from 27% in April to September of FY-22 to 37% in the six months of FY-23.
In the last 12-18 months, SAMIL has secured new contracts from Asian EV OEMs for its EcoMirror, mainly used for lightweight construction, as well as contracts for a next-generation camera monitoring system (CMS) for new electric vehicles.
In addition, the company has identified the electric two-wheeler sector as a segment with high growth potential where it can make an impact by sharing multifaceted expertise and manufacturing capabilities.
Currently, SAMIL contributes 70% to the Motherson Group’s revenue with a total turnover of Rs 62,832 crore. With over 40% market share in the Indian wiring harness industry, the overall turnover of MSWIL stood at Rs 26,337 crore in FY22.
“We are seeing improvement in the external environment though it remains volatile and uncertain. While constructive discussions with customers on sharing inflationary cost structures are moving in a positive direction, this continues to be a work in progress quarter,” the company’s Chairman Vivek Chaand Sehgal said.
“In the post-COVID world the inventory days are higher by 10 days due to supply chain volatility for which we are investing an additional amount of Rs 2,000 crore. However, as supply chain issues normalize, we are expecting a moderation in working capital expenses in the coming months,” the CFO added. For the ongoing financial year, the company has planned a regular capex of Rs 2,500 crore, out of which it has spent only about Rs 850 crore in H1 FY23.
