By Ben Otto


Samvardhana Motherson International Ltd. said net profit in its fiscal first quarter fell 51% on-year as higher inflation, freight and energy costs cut into record quarterly revenue.

Net profit in the quarter ended June fell to 1.41 billion rupees ($17.7 million), the Noida-based maker of wiring harnesses and other automotive components said late Monday.

Total revenue from operations rose 9.0% on-year to INR176.15 billion, while total expenses rose 10% on year to INR174.40 billion, it said.

The company, formerly known as Motherson Sumi Systems Ltd., said there were signs of volume recovery toward the end of the quarter, with passenger car sales showing an improving trend, but that inflationary headwinds persist.

"The market demand remains strong, however, due to various supply chain constraints including chip shortages, production volumes [of original equipment manufacturers] continued to fluctuate," Chairman Vivek Chaand Sehgal said in a statement. "This quarter's results are to be seen in the backdrop of continued high inflation, elevated freight, energy costs etc."

The company unveiled a target to achieve net-zero carbon emissions by 2040 and said it had approved plans to raise up to INR10 billion via private placement of non-convertible debentures.


Write to Ben Otto at ben.otto@wsj.com


(END) Dow Jones Newswires

08-08-22 2305ET