SKF India (500472) Q4 24/25 earnings summary

Executive summary

• Q4 sales grew 1% year-over-year, with full-year sales up 8% to INR 48,305 million, driven by broad-based growth across industrial and automotive segments, despite a 13% decline in exports due to global macroeconomic factors.

• Profit before tax (PBT) margin for Q4 rose sharply to 23.3% due to cost-saving initiatives and a significant transfer pricing adjustment; full-year PBT margin was 15.8%, down 60 basis points year-over-year but within the expected 16%-19% range.

• Cash flow from operations declined 67% year-over-year for FY25, mainly due to increased working capital from higher inventory and receivables, expected to normalize in the coming quarters.

• Board approved unaudited Q4 and audited annual results for FY25, with auditors issuing unmodified opinions on both standalone and consolidated statements.

• Final dividend of ₹14.5 per share recommended for FY25, subject to AGM approval.

Financial highlights

• Standalone revenue for FY25 was ₹49,199.2 million, up from ₹45,701.3 million year-over-year.

• Standalone net profit for FY25 was ₹5,658.1 million, compared to ₹5,517.7 million in FY24.

• Consolidated revenue for FY25 reached ₹49,199.2 million, with consolidated net profit at ₹5,659.1 million.

• Earnings per share (EPS) for FY25 stood at ₹114.4 (standalone) and ₹114.5 (consolidated), both up from the previous year.

• Cash and cash equivalents decreased to ₹7,107.6 million as of March 31, 2025, from ₹12,174.6 million a year earlier.

Outlook and guidance

• GDP growth in relevant sectors is expected to remain robust at 6%-7%, with continued strength in commercial vehicles, tractors, and infrastructure spending.

• Automotive and industrial EBITDA margins for FY25 are expected to be similar to FY24, at around 18% and 17% respectively, with PBT margins near 16% for both.

• CapEx is projected to double to INR 250-270 crores per annum over the next two to three years, mainly for a new industrial plant and capacity expansion.

• Dividend payout of ₹14.5 per share proposed, totaling ₹716.9 million, pending AGM approval.

• Demerger of the Industrial Business to a wholly owned subsidiary is in process, pending regulatory and shareholder approvals.