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Schaeffler India reported 13% rise in net profit to Rs 61.21 crore for the second quarter ended June 2018 vis a vis a profit of Rs 53.98 crore a year ago. Net salesrose 12% to Rs 514.92 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.
Quarter Performance
The OPM during the second quarter ended June 2018 fell 230 bps to 16.5% due to due to increased raw material cost. Raw material cost coupled with purchase of goods (as a % to sales, net of stock) rose 810bps to 66.6%. Other expenses (% of sales net of stock) fell 230 bps at 12.9%. Employee expenses fell 170bps to 6.5%.
Thus the operating profit fell 1% to Rs 84.92crore. Other income stood 83% higher at Rs 28.82 crore. After 78% dropin interest charges to Rs10 lakh and 8% rise in depreciation cost to Rs 19.13 crore, the company registered 13% rise in profit to Rs 94.51 crore. After 12% rise in tax provision to Rs 33.3 crore, net profitstood at Rs 61.21 crore, higher by 13%.
Half Year Performance:
For the first half ended June 2018, the company registered 14% rise in net profit to Rs 127.29 crore on 13% rise in sales to Rs 1036.11 crore.
The OPM during the first half ended June 2018 fell 170 bps to 17.3% due to due to increased raw material cost. Raw material cost coupled with purchase of goods (as a % to sales, net of stock) rose 600 bps to 64.1%. Other expenses (% of sales net of stock) fell 150 bps at 13.3%. Employee expenses fell 140 bps to 6.9%.
Thus the operating profitrose 3% to Rs 179.2crore. Other income stood 65% higher at Rs 51.7 crore. After 75% drop in interest charges to Rs20 lakh and 8% rise in depreciation cost to Rs 37.97 crore, the company registered 13% rise in profit to Rs 192.68 crore. After 12% rise in tax provision to Rs 65.39 crore (40 bps drop in tax rate), net profit stood at Rs 127.29 crore, higher by 14%.
Shares of Schaeffler India are currently trading around Rs 5275 at BSE.
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