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Schaeffler India reported 15% rise in net profit to Rs66.03 crore for the first quarter ended March 2018 vis a vis a profit of Rs57.08 crore a year ago. Net salesrose 13% to Rs521.19 crore during the quarter. Big rise in other income was responsible for pulling up the bottomline.The quarter witnessed substantial drop in margins during the quarter.
The Schaeffler Group is a leading manufacturer of rolling bearings and linear products worldwide as well as renowned supplier to the automotive industry. In India, with its three strong brands – INA, FAG and Luk – the Schaeffler Group has emerged as a leading development and engineering partner for its customers ensuring cost effective local production, rapid delivery service, seamless application engineering and sales support.
Commenting on the results and financial performance of Schaeffler India Limited, Mr.Dharmesh Arora, Managing Director, said, "As the economy gathers momentum, we havewitnessed all round growth in the quarter one of 2018. Our business both in Automotive and
Industrial sectors delivered good results and we expect the growth trajectory to continue. Itseems like the impacts from GST implementation are behind us."
Quarter Performance
The OPM during the first quarter ended March 2018 fell 150 bps to 17.7% due to due to increased raw material cost. Raw material cost coupled with purchase of goods (as a % to sales, net of stock) rose 310bps to 60.8%. Other expenses (% of sales net of stock) fell 9 bps at 14.24%. Employee expenses fell 9bps to 7.4%.
Thus the operating profitrose 4% to Rs92.43crore. Other income stood 58% higher at Rs24.63 crore. After 71% dropin interest charges to Rs10 lakh and 7% rise in depreciation cost to Rs18.84 crore, the company registered 14% rise in profit to Rs98.12 crore. After 12% rise in tax provision to Rs 32.09 crore, net profitstood at Rs66.03 crore, higher by 15%.
Further to the merger scheme announced on August 30, 2017 by the Board of Directors ofINA Bearings India Pvt Limited, LuK India Pvt Limited and Schaeffler India Limited, SchaefflerIndia Limited also published the consolidated results on a pro-forma basis for the three
companies. On a pro-forma basis, the quarterly (Jan-Mar 2018) consolidated total income(net) stood at Rs 111.3 crore, higher by 16.5% compared to the corresponding period of2017.
Shares of Schaeffler India are currently trading 0.4% lower around Rs5280 at BSE 0n 18 April 2018, the following day after earnings were announced.
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