SKF India (500472) Q1 24/25 earnings summary

Executive summary

• Net sales for Q1 FY 2024-25 were INR 11.8 billion, with 50% from industrial, 41% from automotive, and 8-9% from exports.

• Key growth drivers included heavy industries, metals, two-wheelers, cars, and tractors.

• Manufacturing mix improved to 64% in Q1, up from 58% in the previous quarter.

• Unaudited standalone and consolidated financial results for the quarter ended June 30, 2024, were approved by the Board and reviewed by statutory auditors with an unmodified opinion.

• Financial statements were prepared in accordance with Ind AS and SEBI LODR requirements.

Financial highlights

• Consolidated revenue from operations for Q1 FY25 was ₹12,062.2 million, up from ₹11,496.0 million in Q1 FY24.

• Margins remained stable year-over-year despite higher manufacturing mix, as prior year benefited from higher trading margins due to inflation-driven pricing actions.

• Consolidated profit for the period was ₹1,589.3 million, compared to ₹1,544.2 million in Q1 FY24.

• Material cost increased by 200 basis points quarter-over-quarter, attributed to higher production and manufacturing mix.

• Basic and diluted EPS for the quarter were ₹32.1 and ₹32.2, respectively, on a consolidated and standalone basis.

Outlook and guidance

• Growth expected to pick up in coming quarters as wind and rail segments recover and election-related slowdowns subside.

• No formal guidance provided, but focus remains on profitable growth and margin improvement.

• Wind business expected to resume growth post customer pruning; railways to benefit from ongoing government projects.