Schaeffler
India conducted a conference call on 19 February 2024 to discuss its financial
results for the quarter ended December 2023. Harsha Kadam, MD&CEO of the
company addressed the call:
Highlights:
The company has posted 3.4%
year-on-year growth in revenues in Q4CY2023. The revenues growth has been
impacted to 36% dip in exports and other segment revenues. The domestic
revenues growth has remained healthy.
On the economic front, the industrial
production sector exhibited steady growth, particularly in the core sectors
like cement, coal, electricity and steel production.
The two-wheeler market continued
to be muted, while the passenger vehicle and commercial vehicle segments
exhibited healthy performance in the automotive sector. The agriculture tractor
sector witnessed challenges due to unfavorable weather conditions.
Interim Union budget 2024-25
has given high attention for infra push followed by transport and the segment
which the company serves has received greater attention. The steps such as conversions
of 4000 bogies to Vande Bharat standard, new rail corridors will enable the
growth of the freight segment. Focus on renewable energy is step in the right
direction. Viability gap funding for offshore wind energy will help wind to
emerge stronger. The electric vehicle segment is next focus area.
The company is seeing demand
from coming from the wind sector, while expects good run to continue for automotive
segment.
New business wins in select
sectors in the automotive as well as industrial segment. The balanced business
portfolio has helped to sustain performance for the quarter.
The company is entering 2024
with an uptick from some of the market sectors, with committed efforts to
leverage the market growth.
In the automotive
Technologies segment, the company has business wins in PVs for valve train and
engine components, double clutches for MHCV segment and Gen -3 wheel
bearings in PV segment.
In the automotive aftermarket
segment the company has continued to add more products with business wins
continuing for FEAD/ Timing Kit, TRBs in the PV segment. The focus continued on
network penetration and range extension.
Industrial segment focus is on
precision and efficiency. The company has witnessed key business win in the
DGBBS for electric TWs, RIBBs in raw materials sector and bearings for
railway applications.
The capex saw some drop, but
the company is remains committed to investments. The company has maintained
capex guidance, while working capital continued at optimal levels.
The company expects positive
value addition expected ahead.
The company is optimistic
about future growth opportunities in the wind and automotive sectors.
Slowdown in exports is owing
to global weak demand conditions. The company is seeing some returning of
demand from Europe and hopes for exports to improve from Q1CY24.
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