Timken India (522113) Q2 24/25 earnings summary

Executive summary

• Achieved record September quarter revenue of INR 753 crore (₹7,528 million), marking 10% year-over-year growth, driven by strong domestic demand despite subdued exports and a 4% sequential decline in domestic sales due to monsoon seasonality.

• Unaudited financial results for the quarter and half year ended September 30, 2024, were reviewed and approved by the Board and Audit Committee on November 5, 2024.

• The statutory auditor's limited review report is unmodified, confirming compliance with regulatory requirements.

• PBT margin stood at 16.4%, down from 18% in the prior year and slightly lower than the previous quarter's 16.6%, impacted by unfavorable product mix and lower export contribution.

• Robust cash flow and ongoing strategic investments, notably the Bharuch project, which is progressing despite weather-related construction delays.

Financial highlights

• Revenue for Q2 FY25 reached INR 753 crore (₹7,528 million), a 10% increase year-over-year.

• Net profit after tax for Q2 FY25 was ₹899 million, compared to ₹930 million in Q1 FY25 and ₹672 million in Q2 FY24.

• Earnings per share (EPS) for Q2 FY25 stood at ₹11.96, compared to ₹12.80 in Q1 FY25 and ₹8.94 in Q2 FY24.

• PBT margin was 16.4%, compared to 18% in the same quarter last year and 16.6% in the previous quarter.

• Revenue mix: rail 23%, mobile 18%, distribution 19%, process 21%, exports 19%.

Outlook and guidance

• Rail segment expected to maintain steady growth, with the last quarter of each fiscal year typically the strongest due to wagon manufacturing cycles.

• Americas rail exports projected to remain stable, with potential recovery in the U.S. heavy truck segment post-elections.

• Optimism for improved business in the October–March period, supported by positive signals from the U.S. and post-Diwali demand in India.

• The company paid a final dividend of ₹2.50 per equity share during the quarter, as approved at the AGM.