Capitaline

Results 28-Jul-22

Analysis

Schaeffler India

Strong show

Schaeffler India has recorded strong 41.85% jump in the net sales (including other operating income) to Rs 1748.83 crore. Sales of Mobility Components & Related Solutions segment has gone up 38.57% to Rs 1330.04 crore (accounting for 76.05% of total sales). Sales of Others segment has gone up 53.38% to Rs 418.79 crore (accounting for 23.95% of total sales). Profit before interest, tax and other unallocable items (PBIT) have jumped 70.53% to Rs 270.46 crore. PBIT of Mobility Components & Related Solutions segment rose 66.39% to Rs 194.28 crore (accounting for 71.83% of total PBIT). PBIT of Others segment rose 82.07% to Rs 76.18 crore (accounting for 28.17% of total PBIT).

PBIT margin of Mobility Components & Related Solutions segment rose from 12.16% to 14.61%. PBIT margin of others segment rose from 15.32% to 18.19%. Overall PBIT margin rose from 12.86% to 15.47%.

Operating profit margin has jumped from 16.79% to 18.40%, leading to 55.38% rise in operating profit to Rs 321.73 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 39.37% to 40.90%. Purchase of finished goods cost fell from 26.27% to 22.14%. Employee cost decreased from 7.11% to 6.20%. Other expenses rose from 12.26% to 12.46%.

Other income increased 25% to Rs 16.2 crore. PBIDT rose 53.59% to Rs 337.93 crore. Provision for interest increased 3.33% to Rs 0.93 crore. Loan funds declined from Rs 63.67 crore as of 30 June 2021 to Rs 58.15 crore as of 30 June 2022. Inventories rose to Rs 1260.70 crore as of 30 June 2022 from Rs 1023.23 crore as of 30 June 2021. Sundry debtors were higher at Rs 1104.79 crore as of 30 June 2022 compared to Rs 772.67 crore as of 30 June 2021. Cash and bank balance rose to Rs 1339.61 crore as of 30 June 2022 from Rs 1236.90 crore as of 30 June 2021.

PBDT rose 53.80% to Rs 337 crore. Provision for depreciation moved up 5.80% to Rs 51.27 crore. Fixed assets increased to Rs 1197.34 crore as of 30 June 2022 from Rs 1154.12 crore as of 30 June 2021. Intangible assets increased from Rs 0.10 crore to Rs 3.01 crore.

Profit before tax grew 67.43% to Rs 285.73 crore. The company has entered into a business transfer agreement on 29 June 2022 with CATENSYS India and has sold its Chain Drive business under Automotive Technologies segment by way of a slump sale on a going concern basis for a lumpsum consideration of Rs 29.42 crore. The gain on sale of business amounting to Rs 14.98 crore has been recognized as an exceptional item.

Provision for tax was expense of Rs 74.96 crore, compared to Rs 42.53 crore. Effective tax rate was 24.93% compared to 24.92%.Profit after tax rose 76.19% to Rs 225.75 crore.

Commenting on the results, Harsha Kadam, Managing Director, said, “ We have progressed well in the first half of the year backed by our strong quarterly performance and are on course despite the ongoing global macroeconomic headwinds. The growth momentum is backed by our diversified portfolio and steady business wins, which enabled registering record revenues. Our focused approach on cost control and countermeasures resulted in resilient margins despite the continuing input cost pressure. This coupled with our capital management and execution capability has helped in realization of financial and operational metrics. We are cognizant of the dynamic yet challenging market conditions and striving to deliver continued performance, while remaining committed to climate protection, society and corporate governance."

Financial performance H1CY2022

For six months ended June 2022, net sales increased 30% to Rs 3316.34 crore. The operating margins of the company surged 253 bps to 19.0%. As a result operating profits galloped 50% to Rs 630.20 crore.

Other income rose 4% to Rs 36.25 crore. Interest cost was down -2% to Rs 1.77 crore. Depreciation rose 6% to Rs 101.76 crore. PBT surged 58% to Rs 562.92 crore. PBT after EO galloped 62% to Rs 577.90 crore.

Effective tax rate was up 82 bps to 25.76%. PAT reported has moved up 62% to Rs 432.87 crore in H1CY2022.

Schaeffler India : Standalone Results
Particulars	2206 (3)	2106 (3)	Var (%)	2206 (6)	2106 (6)	Var (%)	2112 (12)	2012 (12)	Var.(%)
Net Sales	1748.83	1232.89	42	3316.34	2549.71	30	5560.51	3761.84	48
OPM (%)	18.40	16.79		19.00	16.47		17.47	14.25
OP	321.73	207.06	55	630.20	419.93	50	971.54	536.12	81
Other Inc.	16.20	12.96	25	36.25	34.84	4	72.38	60.30	20
PBIDT	337.93	220.02	54	666.45	454.77	47	1043.92	596.42	75
Interest	0.93	0.90	3	1.77	1.81	-2	3.67	5.24	-30
PBDT	337.00	219.12	54	664.68	452.96	47	1040.25	591.18	76
Depreciation	51.27	48.46	6	101.76	96.33	6	197.11	193.97	2
PBT	285.73	170.66	67	562.92	356.63	58	843.14	397.21	112
EO Income	14.98	0.00	-	14.98	0.00	-	0.00	0.00	-
PBT after EO	300.71	170.66	76	577.90	356.63	62	843.14	397.21	112
Taxation	74.96	42.53	76	145.03	88.96	63	214.02	106.24	101
PAT	225.75	128.13	76	432.87	267.67	62	629.12	290.97	116
EPS (Rs)*	53.9	32.8		53.5	34.3		40.3	18.6
* 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 : Standalone Segment Results
	% of total	2206 (3)	2106 (3)	Var (%)	% of total	2206 (6)	2106 (6)	Var (%)	% of total	2112 (12)	2012 (12)	Var (%)
Sales
Mobility Compoents & Related Solutions	76.1	1330.04	959.85	39	76.8	2545.86	2009.22	27	78.9	4384.99	3006.38	46
Others	23.9	418.79	273.04	53	23.2	770.48	540.49	43	21.1	1175.52	755.46	56
Total Reported Sales	100.0	1748.83	1232.89	42	100.0	3316.34	2549.71	30	100.0	5560.51	3761.84	48
Less: Inter segment revenues	0.0	0	0	-	0.0	0	0	-	0.0	0	0	-
Net Sales	100.0	1748.83	1232.89	42	100.0	3316.34	2549.71	30	100.0	5560.51	3761.84	48
PBIT
Mobility Compoents & Related Solutions	71.8	194.28	116.76	66	73.3	387.27	238.39	62	75.4	583.78	242.24	141
Others	28.2	76.18	41.84	82	26.7	141.17	85.21	66	24.6	190.65	99.91	91
Total PBIT	100.0	270.46	158.6	71	100.0	528.44	323.6	63	100.0	774.43	342.15	126
Less : Interest		0.93	0.9	3		1.77	1.81	-2		3.67	5.24	-30
Add: Other un-allcoable		31.18	12.96	141		51.23	34.84	47		72.38	60.3	20
PBIT Margin(%)
Mobility Compoents & Related Solutions		14.61	12.16	245		15.21176	11.8648	335		13.31	8.06	525
Others		18.19	15.32	287		18.32234	15.76532	256		16.22	13.23	299
PBT		300.71	170.66	76		577.9	356.63	62		843.14	397.21	112

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