Schaeffler India (505790) Q4 23/24 earnings summary

Executive summary

• Double-digit revenue growth was achieved for the year, with broad-based contributions across all business segments and improved earnings quality through cost management.

• Customer recognition included multiple awards for supply chain resilience, digital transformation, and new product development.

• Entering 2025 with a focus on business growth, prudent financial management, and digital transformation, supported by the acquisition of Koovers.

• Audited consolidated and standalone financial results for the year ended December 31, 2024, were approved, with a recommended dividend of ₹28 per share, up from ₹26 last year.

Financial highlights

• Q4 2024 revenue reached ₹2,082 crores (20,823 mn INR), up 12.2% year-over-year and 0.5% sequentially; full-year revenue at ₹8,076 crores (80,763 mn INR), up 11.8%.

• Q4 EBITDA margin was 18.8%, with profit after tax at ₹249 crores (12% margin); full-year EBITDA margin at 18.5% and PAT margin at 12.1%.

• Free cash flow improved to ₹160 crores (1,628 mn INR) in Q4; annual free cash flow at ₹224 crores.

• Dividend of ₹28 per share recommended for 2024, up from ₹26 in 2023, with a payout ratio of 45%.

• Standalone net profit for FY24 was ₹9,776.7 million, with consolidated net profit at ₹9,388.6 million.

Outlook and guidance

• Continued focus on operational cost management, prudent financial discipline, and leveraging digital transformation for growth in 2025.

• CapEx for CY25 and CY26 to be 10-20% lower than the recent average, focusing on efficiency and utilization of existing investments.

• Export run rate expected to return to ₹300 crores per quarter if geopolitical conditions stabilize.

• Dividend payout is subject to shareholder approval at the AGM and will be paid within 30 days of the meeting.