Timken India conducted conference call on 31 May 2022 to discuss the financial results and performance of the company for the quarter ended Mar'22. Mr. Sanjay Koul - Chairman & Managing Director and Mr. Avishrant Keshava - WholeTime Director & CFO of the company addressed the call

Highlights of the Concall

• Volumes were up 40% in FY22 compared to FY21

• Current capacity utilization is around 70-75%. The company can go to the maximum 80-85% of capacity utilization considering plant care and maintenance. However with some modernization and improvement in technology volumes are improve in small quantities.

• Export revenue was Rs 670 crore, up by 80% in FY22

• The railways plans to add and done tender for 90000 wagons for next three years meaning 720000 bearings.

• Alloy prices have been continuously moving up since 2020 but has calmed down a little bit because of export duty.

• The company has been able to pass on the increase in raw material prices led by continuous discussion with automotive customers

• The company reported higher margins led by higher capacity utilization of the plants with higher order book for plants, improved product mix and higher exports as few global plants were shut down during the quarter.

• The company is working continuously towards process improvement, localization plans, passing on the price changes

• The company expects domestic and exports demand to be robust despite fears of slowdown amid rising interest rates.

• India does not have a very strong wind market but the market is for gearbox exports out of India.

• Bearings are also used in defense sector like naval ships, coastguard ships submarines, gearboxes used in the engines for aircraft, landing gears and tank turrets where market is significantly growing

• The company is optimistic about India as it is on a growth path. India is close to 3 trillion going on to $4 trillion economy and manufacturing is going to become more and more significant. India is destined to become a strong exporter.

• The company is ready to expand capacities. However, it will take a call later considering sustainability of the demand from user industries.