India's Samvardhana Motherson Q3 profit jumps 85%

BENGALURU (Reuters) - Indian auto components maker Samvardhana Motherson International Ltd said its third-quarter profit jumped 85%, meeting estimates, helped by a recovery in demand for vehicles in Europe and at home.

The Noida-based company, formerly known as Motherson Sumi Systems, reported a consolidated profit of 4.54 billion rupees ($55.03 million) for the quarter, compared to 2.45 billion rupees a year ago.

Analysts on average had expected a profit of 4.53 billion rupees, according to Refinitiv IBSE data.

Europe, a key market of the company, saw a sharp monthly increase in new car registrations towards the end of 2022, according to European Automobile Manufacturers Association.

Samvardhana Motherson's modules and polymer products segments, which contributes to around 54% of revenue, rose 18.2% to 109.45 billion rupees, driven by strength in Europe from the previous quarter. However, growth in other regions were muted.

The wiring harness business grew 24%.

Total revenue from operations rose 25.5% to 202.26 billion rupees, led by volume recovery and a favourable product mix, the company said, adding it continued to share inflationary costs with customers and debt levels remained under control.

($1 = 82.5025 Indian rupees)

(Reporting by Anuran Sadhu in Bengaluru)