Exciting news hit the headlines on March 4, 2025—Samvardhana Motherson International (Motherson) has become a Tier 1 supplier for Airbus’s commercial aircraft through its subsidiary, CIM Tools India. This multi-year contract to supply aerospace components and assemblies from its Bengaluru facility is a major boost for the company, which already supports Airbus’s helicopter and defense divisions. But what does this mean for Motherson’s finances and stock? Let’s break it down in simple terms, focusing on key numbers like sales growth, profits, and basic stock trends—no heavy financial jargon here!
Why the Airbus Deal Is a Big Deal for Motherson
Motherson’s new role as a Tier 1 supplier means Airbus trusts it to deliver critical parts directly to its final assembly lines. It’s like landing a huge new client for your business—think of a bakery getting hired by a major hotel chain to supply all its pastries. This deal is expected to drive “significant growth” for Motherson, expanding its footprint in the aerospace industry alongside its auto parts business.
Here’s a quick look at Motherson’s financial health, focusing on the basics that matter:
Sales Growth – More Revenue Coming In Motherson’s sales have skyrocketed from Rs. 8,414 crores in March 2014 to Rs. 111,404 crores in the last 12 months (up to September 2024). Over 10 years, sales grew at 12% per year, and over the last 3 years, it’s jumped by 20%. The Airbus deal will likely add to this growth, bringing in more money from aerospace parts.Profits – More Money After Expenses profits (net profit) grew from Rs. 1,097 crores in 2014 to Rs. 4,474 crores in the last 12 months. Over 10 years, profits increased by 14% annually, and over 3 years, they surged by 39%. This shows Motherson is making more money and keeping costs in check.
Cash Flow – Money to Keep Things Running
Motherson generates strong cash from its main business—Rs. 7,569 crores in 2024—and has a net cash flow of Rs. 2,205 crores. This means it has plenty of cash to pay bills, invest in growth (like the Airbus deal), and handle debts.Debt – Loans to Manage the company borrowed Rs. 25,417 crores by September 2024, up from Rs. 4,840 crores in 2014. It’s like taking a big loan to expand, but with profits and cash flow covering interest (Rs. 1,907 crores recently), it seems manageable for now.
Return on Equity (ROE) – ROE is 12% over the last 10 years and 9-12% recently. This means for every Rs. 100 investors put in, Motherson makes Rs. 12 profit—a solid result for a manufacturing company.This Airbus deal should boost sales and profits, making Motherson’s finances look even stronger as it grows in aerospace.Recent Results – Motherson’s latest quarterly results (up to December 2024) show it’s holding strong:Sales hit Rs. 27,666 crores, up 8% from last year.
Operating profit (EBITDA) improved to Rs. 2,776 crores, showing efficient operations.Even with weaker global auto sales, Motherson’s diversification into aerospace (like this Airbus deal) is helping it grow.Simple Stock Tips – Fibonacci Levels for those curious about Motherson’s stock, here’s a quick, basic look at one technical tool: Fibonacci levels. These are guideposts on a stock chart that predict where the price might stop falling (support) or rising (resistance). Common levels are 38.2%, 50%, and 61.8%.
As of February 28, 2025, Motherson’s stock dropped to Rs. 117.27, down 4.58% in a day, and is down 1.62% over the past year. If you check its price chart (on sites like Moneycontrol or TradingView), Fibonacci retracement might show support around Rs. 110-120. For example, if the stock fell from Rs. 130 to Rs. 117, the 38.2% level could be near Rs. 126, and 61.8% near Rs. 120—potential areas where the price might bounce back.This isn’t a guarantee, but it’s a simple way to spot trends. The Airbus deal could push the stock up, so watch these levels closely.
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