Capitaline

Results 26-Apr-24

Analysis

Schaeffler India

Healthy domestic revenue growth, export revenues recovers sequentially

Net sales (including other operating income) of Schaeffler India has increased 10.60% to Rs 1873.13 crore in the quarter ended March 2024 (Q1CY2024). Sales of Mobility components segment has gone up 7.64% to Rs 1,459.11 crore (accounting for 77.90% of total sales). Sales of Other segment has gone up 22.47% to Rs 414.02 crore (accounting for 22.10% of total sales).

Segment wise, the revenue from automotive technologies increased 9% to Rs 652 crore and vehicle lifetime solutions surged 26% to Rs 185 crore. The revenues from bearings and industrial solutions also jumped 16% to Rs 783 crore. the revenue from exports and other segment declined 8%, but improved sharply qoq by 20% to Rs 253 crore. The domestic revenues increased at healthy and steady pace of 14% to Rs 1620 crore.

Profit before interest, tax and other unallocable items (PBIT) rose 1.97% to Rs 267.40 crore in Q1CY2024. PBIT of Mobility components segment fell 2.58% to Rs 185.33 crore (accounting for 69.31% of total PBIT). PBIT of Other segment increased 14.00% to Rs 82.07 crore (accounting for 30.69% of total PBIT) in Q1CY2024.

PBIT margin of Mobility components segment fell from 14.03% to 12.70%. PBIT margin of Other segment fell from 21.30% to 19.82%. Overall PBIT margin fell from 15.48% to 14.28%.

Operating profit margin has declined from 18.58% to 17.61%. The operating profit rose 4.82% to Rs 329.86 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 43.12% to 41.62%. Purchase of finished goods cost rose from 20.16% to 23.17%. Employee cost decreased from 6.37% to 6.28%. Other expenses fell from 12.76% to 12.54%.

Other income fell 4.74% to Rs 31.14 crore. PBIDT rose 3.92% to Rs 361 crore. Provision for interest rose 5% to Rs 0.84 crore. PBDT rose 3.92% to Rs 360.16 crore. Provision for depreciation rose 19.08% to Rs 62.46 crore.

Profit before tax grew 1.22% to Rs 297.70 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 77.98 crore, compared to Rs 74.75 crore. Effective tax rate was 26.19% compared to 25.41%.

Minority interest was nil in both the periods. Net profit attributable to owners of the company increased 0.16% to Rs 219.72 crore.

Promoters’ stake was 74.13% as of 31 March 2024, compared to 74.13% as of 31 March 2023.

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 : Consolidated Results
Particulars	2403 (3)	2303 (3)	Var.(%)	2312 (12)	2212 (12)	Var.(%)
Net Sales	1873.13	1693.62	11	7250.91	6867.42	6
OPM (%)	17.61	18.58		18.22	18.85
OP	329.86	314.68	5	1321.20	1294.39	2
Other Inc.	31.14	32.69	-5	124.55	77.68	60
PBIDT	361.00	347.37	4	1445.75	1372.07	5
Interest	0.84	0.80	5	4.27	3.55	20
PBDT	360.16	346.57	4	1441.48	1368.52	5
Depreciation	62.46	52.45	19	223.01	206.46	8
PBT	297.70	294.12	1	1218.47	1162.06	5
EO Income	0.00	0.00	-	-4.70	14.98	-
PBT after EO	297.70	294.12	1	1213.77	1177.04	3
Taxation	77.98	74.75	4	314.75	297.83	6
PAT	219.72	219.37	0	899.02	879.21	2
EPS (Rs)*	56.2	56.1		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 : Consolidated Segment Results
	% of total	2403 (3)	2303 (3)	Var.(%)	% of total	2312 (12)	2212 (12)	Var.(%)
Sales
Mobility Compoents & Related Solutions	77.9	1459.11	1355.56	8	78.8	5711.61	5387.68	6
Others	22.1	414.02	338.06	22	21.2	1539.30	1479.74	4
Total Reported Sales	100.0	1873.13	1693.62	11	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	1873.13	1693.62	11	100.0	7250.91	6867.42	6
PBIT
Mobility Compoents & Related Solutions	69.3	185.33	190.24	-3	72.0	790.22	812.16	-3
Others	30.7	82.07	71.99	14	28.0	307.97	275.77	12
Total PBIT	100.0	267.40	262.23	2	100.0	1098.19	1087.93	1
Less : Interest		0.84	0.80	5		4.27	3.55	20
Add: Other un-allcoable		31.14	32.69	-5		119.85	92.66	29
PBIT Margin(%)
Mobility Compoents & Related Solutions		12.70	14.03	-133		13.84	15.07	-123
Others		19.82	21.30	-148		20.01	18.64	137
PBT		297.70	294.12	1		1213.77	1177.04	3

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