Schaeffler India (505790) Q1 24/25 earnings summary

Executive summary

• Achieved double-digit year-over-year revenue growth for the fourth consecutive quarter, with broad-based gains across automotive and industrial segments.

• Quality of earnings improved, driven by volume growth in local products, operational efficiency, and innovation.

• Maintained operational efficiency through business vertical restructuring and prudent working capital and CapEx management.

• Positive cash flow resulted from better earnings, improved working capital, and judicious capex.

• Board approved unaudited financial results and noted the resignation of a Non-Executive Non-Independent Director, effective May 31, 2025.

Financial highlights

• Q1 2025 standalone revenue reached INR 21,100.2 million, up 14.1% year-over-year and 1.3% sequentially; consolidated revenue was INR 21,744.1 million.

• EBITDA margin improved to 19.3%, with EBITDA at INR 4,071 million, up 20.2% year-over-year.

• Profit after tax stood at INR 2,654.1 million (standalone), representing a margin of 12.6%, up 16.6% year-over-year.

• Free cash flow was strong at INR 2,371 million, a significant improvement from negative flow in Q1 2024.

• CapEx for the quarter was INR 825 million, about half of the prior year period.

Outlook and guidance

• Management remains committed to sustaining double-digit growth and improving operational efficiency.

• Focus on capacity utilization, leveraging recent CapEx investments, and localization to stay ahead of industry trends.

• Positive outlook for automotive and industrial segments, supported by domestic demand and export growth.