- 17 May 2023
- ICICI Securities
Timken Q4 Results 2023: Margins contract sharply on higher traded sales
Timken India Ltd | CMP: 4282 | Market Cap: 32,205.77
Q4FY23 Earnings Summary
View: Though the revenue growth has been better than estimates but it is mainly driven by increase in traded sales which in-turn has impacted margins. We believe that Timken is expected to do well in the coming period led by investments in domestic manufacturing of spherical and cylindrical roller bearings which is currently being traded through imports. These bearings are widely used in process industry and demand has been strong for the same. Margins are also expected to improve post the manufacturing of these bearings in India. Timken has diversified presence across verticals which are sensitive to capex cycle augur well for the company in the medium to long term. Moreover very significant allocation to railways segment will further brighten business prospects and provide strong business visibility over the next few years.
Impact: Neutral