Capitaline

Results 17-Feb-23

Analysis

Schaeffler India

Strong show with improved margins

Schaeffler India has recorded healthy 21% growth in the net profit to Rs 230.98 crore in the quarter ended December 2022 (Q4CY2022). Its net sales moved up 18% to Rs 1794.65 crore as sales of Mobility Components & Related Solutions segment moved up 12.07% to Rs 1430.89 crore (accounting for 79.73% of total sales) and sales of Others segment has gone up 47.63% to Rs 363.76 crore (accounting for 20.27% of total sales). Profit before interest, tax and other unallocable items (PBIT) jumped 23.85% to Rs 292.23 crore. PBIT of Mobility Components & Related Solutions segment increased 12.38% to Rs 222.92 crore (accounting for 76.28% of total PBIT), while PBIT of Others segment surged 84.38% to Rs 69.31 crore (accounting for 23.72% of total PBIT).

PBIT margin of Mobility Components & Related Solutions segment rose from 15.54% to 15.58%, while PBIT margin of others segment rose from 15.26% to 19.05%. Overall PBIT margin improved from 15.49% to 16.28%.

Operating profit margin has jumped from 18.85% to 19.24%, leading to 20.23% rise in operating profit to Rs 345.22 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 37.56% to 38.31%. Purchase of finished goods cost fell from 23.17% to 20.35%. Employee cost decreased from 6.59% to 6.38%. Other expenses rose from 13.67% to 14.58%.

Other income fell 16.15% to Rs 18.27 crore. PBIDT rose 17.66% to Rs 363.49 crore. Provision for interest rose 6.90% to Rs 0.93 crore. Loan funds declined from Rs 60.70 crore end December 2021 to Rs 57.38 crore end December 2022. Inventories rose to Rs 1243.37 crore end December 2022 from Rs 1086.49 crore end December 2021. Sundry debtors were higher at Rs 1032.41 crore end December 2022 compared to Rs 846.27 crore end December 2021. Cash and bank balance rose to Rs 1554.53 crore end December 2022 from Rs 1415.67 crore end December 2021.

PBDT rose 17.70% to Rs 362.56 crore. Provision for depreciation increased 3.56% to Rs 52.99 crore. Fixed assets increased to Rs 1371.48 crore end December 2022 from Rs 1157.71 crore end December 2021. Intangible assets declined from Rs 1.22 crore to Rs 0.57 crore.

Profit before tax grew 20.51% to Rs 309.57 crore. Provision for tax was expense of Rs 78.59 crore, compared to Rs 66.24 crore. Effective tax rate was 25.39% compared to 25.79%. Profit after tax moved up 21.16% to Rs 230.98 crore.

Commenting on the results, Harsha Kadam, Managing Director, said, “Our quarterly growth momentum continued on the back of favourable sales mix and our emphasis on deploying sustainable countermeasures to enable a strong quality of earnings, while navigating the headwinds in a highly volatile environment. Our annual results for the year were aided by trajectory of wins across our businesses and focus on operational efficiency, reflecting our commitment on customer centricity, innovation and agility. As we enter 2023, we stand by our commitment to enhance stakeholder value by working on both our financial and non financial metrics. We wish to thank all our stakeholders for reposing the confidence and continued support.”

Full Year Financial Performance CY2022

Net sales increased 23.50% to Rs 6,867.42 crore in year ended December 2022 (CY2022), as sales of Mobility Components & Related Solutions segment moved up 22.87% to Rs 5387.68 crore (accounting for 78.45% of total sales) and sales of Others segment has gone up 25.88% to Rs 1479.74 crore (accounting for 21.55% of total sales).

Profit before interest, tax and other unallocable items (PBIT) have jumped 40.48% to Rs 1087.93 crore. PBIT of Mobility Components & Related Solutions segment increased 39.12% to Rs 812.16 crore (accounting for 74.65% of total PBIT). PBIT of Others segment surged 44.65% to Rs 275.77 crore (accounting for 25.35% of total PBIT).

PBIT margin of Mobility Components & Related Solutions segment rose from 13.31% to 15.07%. PBIT margin of others segment rose from 16.22% to 18.64%. Overall PBIT margin rose from 13.93% to 15.84%.

Operating profit margin has jumped from 17.47% to 18.85%, leading to 33.23% rise in operating profit to Rs 1294.39 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 39.28% to 40.04%. Purchase of finished goods cost fell from 24.51% to 22.19%. Employee cost decreased from 6.82% to 6.22%. Other expenses rose from 12.62% to 12.86%.

Other income up 7.32% to Rs 77.68 crore. PBIDT rose 31.43% to Rs 1372.07 crore. Provision for interest fell 3.27% to Rs 3.55 crore. PBDT rose 31.56% to Rs 1368.52 crore. Provision for depreciation moved up 4.74% to Rs 206.46 crore.

Profit before tax grew 37.83% to Rs 1162.06 crore. Provision for tax was expense of Rs 297.83 crore, compared to Rs 214.02 crore. Effective tax rate was 25.30% compared to 25.38%. Profit after tax increased 39.75% to Rs 879.21 crore.

Schaeffler India : Results
Particulars	2212 (3)	2112 (3)	Var.(%)	2212 (12)	2112 (12)	Var.(%)
Net Sales	1794.65	1523.22	18	6867.42	5560.51	24
OPM (%)	19.24	18.85		18.85	17.47
OP	345.22	287.13	20	1294.39	971.54	33
Other Inc.	18.27	21.79	-16	77.68	72.38	7
PBIDT	363.49	308.92	18	1372.07	1043.92	31
Interest	0.93	0.87	7	3.55	3.67	-3
PBDT	362.56	308.05	18	1368.52	1040.25	32
Depreciation	52.99	51.17	4	206.46	197.11	5
PBT	309.57	256.88	21	1162.06	843.14	38
EO Income	0.00	0.00	-	14.98	0.00	-
PBT after EO	309.57	256.88	21	1177.04	843.14	40
Taxation	78.59	66.24	19	297.83	214.02	39
PAT	230.98	190.64	21	879.21	629.12	40
EPS (Rs)*	59.1	48.8		56.3	40.3
* EPS is annualized on current equity of Rs 31.26 crore, Face value of Rs 2, Excluding extraordinary items.
EO : Extraordinary items
Figures in Rs crore
Source: Capitaline Corporate Database

Schaeffler India : Segment Results
	% of total	2212 (3)	2112 (3)	Var (%)	% of total	2112 (12)	2012 (12)	Var (%)
Sales
Mobility Components & Related Solutions	79.7	1430.89	1276.82	12	78.5	5387.68	4384.99	23
Others	20.3	363.76	246.40	48	21.5	1479.74	1175.52	26
Total Reported Sales	100.0	1794.65	1523.22	18	100.0	6867.42	5560.51	24
Less: Inter segment revenues	0.0	0.00	0.00	-	0.0	0.00	0.00	-
Net Sales	100.0	1794.65	1523.22	18	100.0	6867.42	5560.51	24
PBIT
Mobility Components & Related Solutions	76.3	222.92	198.37	12	74.7	812.16	583.78	39
Others	23.7	69.31	37.59	84	25.3	275.77	190.65	45
Total PBIT	100.0	292.23	235.96	24	100.0	1087.93	774.43	40
Less : Interest		0.93	0.87	7		3.55	3.67	-3
Add: Other un-allcoable		18.27	21.79	-16		92.66	72.38	28
PBIT Margin(%)
Mobility Components & Related Solutions		15.58	15.54	4		15.07	13.31	176
Others		19.05	15.26	379		18.64	16.22	242
PBT		309.57	256.88	21		1177.04	843.14	40

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