Schaeffler India Reports 16.6% Profit Rise
Schaeffler India, a leading automotive and industrial parts maker, reported a 16.6% increase in its first-quarter profit, driven by strong demand for its transmission, braking systems, and other auto ancillary products. The company, a subsidiary of Germany’s Schaeffler, saw its profit rise to 2.65 billion rupees ($31.1 million) in the quarter ending March 31, compared to 2.28 billion rupees a year ago.
Revenue from operations increased by 14.1% to 21.1 billion rupees, outpacing the 9.8% rise in the cost of materials, which account for over half of its total expenses. For more earnings highlights, click Full Story.
The automotive technologies segment, which accounted for 43.7% of Schaeffler India’s revenue in the quarter, serves customers including passenger and commercial vehicles, as well as tractors. The rest of its revenue comes from three other segments, including an industrial applications segment.
Sales of passenger vehicles grew 2.4% year-on-year in the first quarter, while that of commercial vehicles rose 1.5%, benefiting growth for auto ancillaries like Schaeffler India, according to analysts.
Smaller peers SKF India and NRB Bearings have yet to report quarterly results.
Valuation (next 12 Estimates (next 12 Analysts’ sentiment)
| RIC PE EV/EBITDA Revenue Profit Mean No. of Stock to Div |
|---|
| Schaeffler India 43.03 27.74 12.93 18.90 Buy 9 0.89 0.85 |
| SKF India 30.84 22.64 11.42 26.37 Buy 9 0.81 3.35 |
| NRB Bearings 19.05 13.79 10.51 22.44 Strong 1 0.62 2.02 |
| Timken India 41.95 26.73 12.06 15.00 Strong 1 0.72 0.10 |
*The mean of analysts’ ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
**The ratio of the stock’s last close to analysts’ mean price target; a ratio above 1 means the stock is trading above the PT
January-March Stock Performance
— $1 = 85.1950 Indian rupees
Reporting by Meenakshi Maidas in Bengaluru; Editing by Sumana Nandy
Reference : https://www.livemint.com/companies/company-results/schaeffler-indias-first-quarter-profit-rises-16-6-on-firm-demand-11745927315644.html
