Samvardhana Motherson’s bonus shares issue decision to be taken in board meet today. Details inside

Samvardhana Motherson International Limited's (formerly Motherson Sumi Systems Limited) board will meet today to consider the proposal for bonus equity shares of the company. Bonus shares are fully paid additional shares issued by a company to its existing shareholders.

“We wish to inform that a meeting of the board of directors of the Company is scheduled to be held on Tuesday, August 16, 2022, inter-alia, to consider the proposal for issue of bonus shares to the equity shareholders of the Company,” the ) Auto component major had informed in an exchange filing last week on August 8, 2022.

For the first quarter ended June 2022, Samvardhana Motherson's net profit increased to ₹141 crore, whereas its revenue was at ₹17,712 crore during Q1 FY23.

“The market demand remains strong, however, due to various supply chain constraints including chip shortages, production volumes of OEMs continued to fluctuate. The passenger car sales have shown improving trend from April to June. This quarter’s results are to be seen in the backdrop of continued high inflation, elevated freight, energy costs etc. In order to create a better world for future generations and in line with our customers’ expectations, we are setting the ambitious goal of becoming Carbon Net Zero across our current global operations by 2040," said Vivek Chaand Sehgal, Chairman, Motherson.

Motherson Group is a leading manufacturers of components for the automotive and transport industries. As part of the group's reorganisation activity, the name of Motherson Sumi Systems Limited (MSSL) has now been changed to Samvardhana Motherson International Ltd (SAMIL).

The de-merger of domestic wiring harness (DWH) business and merger with parent entity happened in January this year and the shares listing of Motherson Sumi Wiring India Limited (MSWIL) happened in March. 

MSWIL is a joint venture between Samvardhana Motherson International Ltd (SAMIL) and Sumitomo Wiring Systems. Motherson Sumi Wiring India Ltd reported close to two-fold increase in net profit at ₹126 crore for the first quarter ended June 2022. Total revenue from operations rose to ₹1,671 crore compared to ₹1,114 crore in the year-ago period.

In April last year, MSSL had informed stock exchanges that public shareholders have voted in favour of the proposal with an overwhelming majority, paving the way for successful completion of the proposed restructuring.