Schaeffler India (505790) Q3 23/24 earnings summary

Executive summary

• Achieved 12.1% year-over-year revenue growth in Q3 2024, with domestic business and strong industrial and two-wheeler segments offsetting automotive sector weakness.

• Financial and operating metrics improved, supported by better receivables and inventory management.

• Unaudited standalone and consolidated financial results for Q3 and nine months ended September 30, 2024, were approved by the Board and reviewed by statutory auditors.

• Board approved appointments of four senior managerial personnel to the Executive Leadership Team.

Financial highlights

• Q3 2024 consolidated revenue: ₹21,163.5 million (INR 2,116 crores), up 12.1% YoY; nine-month revenue: ₹61,096 million (INR 6,096 crores).

• Q3 2024 EBITDA: ₹3,828 million (18.5% margin); PAT: ₹2,471 million (11.9% margin); free cash flow improved to ₹1,002 million.

• CapEx for Q3: ₹1,555 million (INR 210.6 crores); cumulative nine-month CapEx: ₹5,360 million (INR 536 crores).

• Standalone and consolidated net profit grew year-over-year; exceptional item of ₹47 million recognized for acquisition-related costs.

Outlook and guidance

• Expect continued sluggishness in passenger vehicle production due to high inventory; slow growth anticipated in tractors.

• CapEx to slow down in the coming year, focusing on realizing benefits from recent investments.

• Acquisition of Koovers aligns with strategic growth initiatives and is expected to enhance the aftermarket ecosystem and digital landscape.