- 14 Aug 2024
- ICICI Securities
SKF INDIA Q1FY25 : MUTED PERFORMANCE
SKFINDIA - 5441 Change: 4.75 (0.09 %)News: SKF India reported muted numbers for Q1FY25 result. Revenue increased by 4.9% YoY (flattish QoQ) to Rs 1206.2 crore. Gross margin also remained flattish YoY at 39.3% (-190 bps QoQ). EBITDA margin contracted by 159 bps (-167 bps QoQ) to 16.1%. Subsequently, EBIDTA declined by 4.5% YoY (-9.2% QoQ) to Rs 193.7 crore. PAT was up 2.9% YoY (-9.3% QoQ) to 158.9 crore, led by higher other income (+78% YoY, +15% QoQ) to Rs 40.1 crore.
Views: Overall operational performance remains muted during the quarter. Going ahead, we expect that company’s operational performance to improve over FY25-26E, led by strong demand traction from higher-growth segments like railways, renewables, industrials, automobile (2W & PV) and gradual recovery in exports. Increasing localisation levels is also expected to help SKF in reduction of overall turnaround time and thus margin improvement.
Impact: Neutral