The company posted a set of very good consolidated numbers for Q3FY14 and the stock price responded accordingly, spurting up sharply into the green. Backed by a very good jump in the topline, which was driven by exports, despite the higher operating costs and higher tax outgo, helped the company end the quarter with a net profit at Rs.250 crore, up by a whopping 143% (YoY) and up 78% sequentially. Its total revenue rose 21% (YoY) at Rs.7890 crore, EBITDA rising 49% at Rs.761 crore. The fully integrated takeover in 2011 of Peguform group is obviously working well. The new entity post the Peguform acquisition is known as Samvardhana Motherson Peguform (SMP) and it has contributed 52% to the total topline.  In terms of segment breakup, consolidated revenue and EBIT is robust but that from non automotive segment has slipped.

The company’s debt remains an issue though it has come down. As at 31^st Dec’ 14, gross debt was at Rs.4904 crore and cash balance was at Rs.594 crore, giving a net debt of Rs.4310 crore. This is 3% lower than net debt in Q3Fy13 though interest outgo has risen from Rs.62 crore to Rs.70 crore. Its 9MFy14 net profit of Rs.462 crore has already surpassed 12MFY13 net profit of Rs.444 crore, thus holding the promise of a bumper FY14.