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Samvardhana Motherson’s shares rose 4% after announcing cost optimization measures targeting EUR 50 million annually over three years to improve operating efficiencies.
Samvardhana Motherson shares jump 4 per cent on Friday.
Samvardhana Motherson Share Price: Samvardhana Motherson International Ltd’s shares jumped 4 per cent during the intraday on Friday. The price surge came after the company announced the cost optimize measures in order to improve operating efficiencies.
“The proposed transformative measures will be implemented in a phased manner and would be targeting optimization of a cost block of approx. EUR 50 Mn per annum once fully executed over the next three years. The cost block under optimization includes various elements such as salary, benefits, overheads, cost of leased / contract employees etc.,” Samvardhana Motherson International Ltd said in the filing.
The scrip traded at Rs 117.90 apiece with a jump of 4.24 per cent, against the day’s opening at Rs 119.60 apiece and previous day close at Rs 113.10 apiece.
Samvardhana Motherson International Ltd has a market cap of Rs 82,955 crore and is part of BSE 100. It engages in the manufacturing of auto components and equipments.
Motherson, through its subsidiary SMRP BV, has initiated transformative measures in Central and Western Europe.
These strategic measures include various operational initiatives and active collaboration with local worker representative associations. The goal is to develop an optimization plan to adjust and recalibrate the workforce in these regions. The implementation of these measures will be phased, aiming to optimize a cost block of approximately EUR 50 million per year once fully executed over the next three years. The cost optimization will cover aspects such as salaries, benefits, overheads, and costs associated with leased or contract employees.
This transformative effort seeks to address the changing supply chain dynamics and implement necessary changes while ensuring uninterrupted customer supplies. All these changes will be carried out in compliance with applicable regulatory norms.
