Capitaline

Results 19-Feb-24

Analysis

Schaeffler India

Revenue growth and margins impacted by sharp decline in exports

Net sales (including other operating income) of Schaeffler India has increased 4.45% to Rs 1874.55 crore in the quarter ended December 2023 (Q4CY2023). Sales of Mobility components segment has gone up 3.09% to Rs 1475.14 crore (accounting for 78.69% of total sales). Sales of Other segment has gone up 9.80% to Rs 399.41 crore (accounting for 21.31% of total sales).

Profit before interest, tax and other unallocable items (PBIT) has slumped 9.77% to Rs 263.67 crore. PBIT of Mobility components segment fell 14.75% to Rs 190.05 crore (accounting for 72.08% of total PBIT). PBIT of Other segment rose 6.22% to Rs 73.62 crore (accounting for 27.92% of total PBIT). PBIT margin of Mobility components segment fell from 15.58% to 12.88%. PBIT margin of Other segment fell from 19.05% to 18.43%. Overall PBIT margin fell from 16.28% to 14.07%.

The sales of automotive technologies segment moved up 9% to Rs 766 crore, automotive aftermarket 21% to Rs 205 crore and industrial 17% to Rs 693 crore. However, the exports and other segment revenues dipped 36% to Rs 211 crore in Q3CY2023.

Operating profit margin has declined from 19.24% to 17.29%, leading to 6.12% decline in operating profit to Rs 324.10 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 38.31% to 41.17%. Purchase of finished goods cost fell from 20.35% to 20.21%. Employee cost decreased from 6.38% to 6.35%. Other expenses fell from 14.58% to 14.30%.

Other income surged 65.30% to Rs 30.2 crore. PBIDT fell 2.53% to Rs 354.3 crore. Provision for interest rose 10.75% to Rs 1.03 crore. PBDT fell 2.56% to Rs 353.27 crore. Provision for depreciation rose 14.04% to Rs 60.43 crore. Profit before tax declined 5.40% to Rs 292.84 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 78.53 crore, compared to Rs 78.59 crore. Effective tax rate was 27.25% compared to 25.39%.

Minority interest was nil in both the periods. Net profit attributable to owners of the company decreased 9.25% to Rs 209.61 crore.

Promoters’ stake was 74.13% as of 31 December 2023, compared to 74.13% as of 31 December 2022.

Full year financial performance CY2023

Net sales (including other operating income) of Schaeffler India has increased 5.58% to Rs 7250.91 crore in CY2023. Sales of Mobility components segment has gone up 6.01% to Rs 5711.61 crore (accounting for 78.77% of total sales). Sales of Other segment has gone up 4.03% to Rs 1539.30 crore (accounting for 21.23% of total sales).

Profit before interest, tax and other unallocable items (PBIT) has jumped 0.94% to Rs 1098.19 crore. PBIT of Mobility components segment fell 2.70% to Rs 790.22 crore (accounting for 71.96% of total PBIT). PBIT of Other segment rose 11.68% to Rs 307.97 crore (accounting for 28.04% of total PBIT).

PBIT margin of Mobility components segment fell from 15.07% to 13.84%. PBIT margin of Other segment rose from 18.64% to 20.01%. Overall PBIT margin fell from 15.84% to 15.15%.

The sales of automotive technologies segment moved up 12% to Rs 3023 crore, automotive aftermarket 19% to Rs 706 crore and industrial 5% to Rs 2548 crore. However, the exports and other segment revenues dipped 15% to Rs 974 crore in CY2023.

Operating profit margin has declined from 18.85% to 18.22%, leading to 2.07% rise in operating profit to Rs 1321.20 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 40.04% to 42.09%. Purchase of finished goods cost fell from 22.19% to 20.40%. Employee cost increased from 6.22% to 6.31%. Other expenses rose from 12.86% to 13.17%.

Other income surged 60.34% to Rs 124.55 crore. PBIDT rose 5.37% to Rs 1445.75 crore. Provision for interest rose 20.28% to Rs 4.27 crore. Loan funds declined from Rs 57.38 crore as of 31 December 2022 to Rs 51.10 crore as of 31 December 2023. Inventories rose to Rs 1315.61 crore as of 31 December 2023 from Rs 1243.37 crore as of 31 December 2022. Sundry debtors were higher at Rs 1055.59 crore as of 31 December 2023 compared to Rs 1032.41 crore as of 31 December 2022. Cash and bank balance rose to Rs 1585.66 crore as of 31 December 2023 from Rs 1554.53 crore as of 31 December 2022.

PBDT rose 5.33% to Rs 1441.48 crore. Provision for depreciation rose 8.02% to Rs 223.01 crore. Fixed assets increased to Rs 1849.73 crore as of 31 December 2023 from Rs 1371.48 crore as of 31 December 2022. Intangible assets increased from Rs 0.57 crore to Rs 82.23 crore.

Profit before tax grew 4.85% to Rs 1218.47 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 314.75 crore, compared to Rs 297.83 crore. Effective tax rate was 25.93% compared to 25.30%.

Minority interest was nil in both the periods. Net profit attributable to owners of the company increased 2.25% to Rs 899.02 crore.

Cash flow from operating activities increased to Rs 884.46 crore for year ended December 2023 from Rs 750.53 crore for year ended December 2022. Cash flow used in acquiring fixed assets during the year ended December 2023 stood at Rs 520.10 crore, compared to Rs 483.04 crore during the year ended December 2022.

Schaeffler India : Standalone Results
Particulars	2312 (3)	2212 (3)	Var.(%)	2312 (12)	2212 (12)	Var.(%)
Net Sales	1874.55	1794.65	4	7250.91	6867.42	6
OPM (%)	17.29	19.24		18.22	18.85
OP	324.10	345.22	-6	1321.20	1294.39	2
Other Inc.	30.20	18.27	65	124.55	77.68	60
PBIDT	354.30	363.49	-3	1445.75	1372.07	5
Interest	1.03	0.93	11	4.27	3.55	20
PBDT	353.27	362.56	-3	1441.48	1368.52	5
Depreciation	60.43	52.99	14	223.01	206.46	8
PBT	292.84	309.57	-5	1218.47	1162.06	5
EO Income	-4.70	0.00	-	-4.70	14.98	-
PBT after EO	288.14	309.57	-7	1213.77	1177.04	3
Taxation	78.53	78.59	0	314.75	297.83	6
PAT	209.61	230.98	-9	899.02	879.21	2
EPS (Rs)*	54.5	59.1		57.7	55.5
* 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	2312 (3)	2212 (3)	Var.(%)	% of total	2312 (12)	2212 (12)	Var.(%)
Sales
Mobility Compoents & Related Solutions	78.7	1475.14	1430.89	3	78.8	5711.61	5387.68	6
Others	21.3	399.41	363.76	10	21.2	1539.30	1479.74	4
Total Reported Sales	100.0	1874.55	1794.65	4	100.0	7250.91	6867.42	6
Less: Inter segment revenues	0.0	0.00	0.00	-	0.0	0.00	0.00	-
Net Sales	100.0	1874.55	1794.65	4	100.0	7250.91	6867.42	6
PBIT
Mobility Compoents & Related Solutions	72.1	190.05	222.92	-15	72.0	790.22	812.16	-3
Others	27.9	73.62	69.31	6	28.0	307.97	275.77	12
Total PBIT	100.0	263.67	292.23	-10	100.0	1098.19	1087.93	1
Less : Interest		1.03	0.93	11		4.27	3.55	20
Add: Other un-allcoable		25.50	18.27	40		119.85	92.66	29
PBIT Margin(%)
Mobility Compoents & Related Solutions		12.88	15.58	-270		13.84	15.07	-123
Others		18.43	19.05	-62		20.01	18.64	137
PBT		288.14	309.57	-7		1213.77	1177.04	3

Previous News

Schaeffler India standalone net profit rises 9.12% in the September 2023 quarter
( Results - Announcements 27-Oct-23 17:06 )

Schaeffler India standalone net profit rises 48.43% in the March 2022 quarter
( Results - Announcements 27-Apr-22 08:07 )

Schaeffler India rises after signing MoU with Tamil Nadu Govt
( Hot Pursuit - 23-Nov-21 14:01 )

Schaeffler India standalone net profit declines 21.09% in the December 2019 quarter
( Results - Announcements 13-Feb-20 08:20 )

Volumes spurt at Schaeffler India Ltd counter
( Hot Pursuit - 12-Oct-21 14:30 )

Larsen & Toubro Ltd Slips 4.78%, S&P BSE Capital Goods index Shed 1.97%
( Hot Pursuit - 11-May-23 09:45 )

Schaeffler India reports standalone net profit of Rs 128.13 crore in the June 2021 quarter
( Results - Announcements 22-Jul-21 07:56 )

Schaeffler India to declare Quarterly Result
( Corporate News - 13-Oct-18 10:18 )

Schaeffler India signs MoU with Govt. of Tamil Nadu
( Corporate News - 23-Nov-21 14:24 )

Schaeffler India Q1 PAT up 48% YoY
( Hot Pursuit - 27-Apr-22 09:21 )

Fag Bearings India standalone net profit rises 34.90% in the September 2015 quarter
( Results - Announcements 06-Nov-15 16:34 )