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.

Commenting on the results and financial performance, Mr. Dharmesh Arora, ManagingDirector, Schaeffler India Limited said, "In a year that had challenges like GSTimplementation, lingering impact from demonetization and new emission standards forcommercial vehicles, company delivered solid results. Revenue grew by 6.5% for the yearand on account of good sales mix, stable foreign exchange and operational efficiencies, EBTgrew faster by 21%. The year was made memorable by announcement made in August, ofmerging the Schaeffler Group's unlisted entities INA Bearings India Pvt Ltd and LuK India PvtLtd with Schaeffler India Ltd. The combined results (proforma) demonstrated the strength of our balanced portfolio among automotive and industrial sectors, growing by 10.8%. Mergeris progressing as planned and is expected to be closed by Q3, 2018. The Board of Directorsrecommended a dividend of INR 17 per share which is higher than previous years".

FY 17 Performance:

The OPM during the year ended Dec 17 rose 260 bps to 19.1% due to decreased raw material and employee cost. Raw material cost coupled with purchase of goods (as a % to sales, net of stock) fell 410bps to 57.4%. Other expenses (% of sales net of stock) rose 95 bps at 15.3%. Employee expenses fell 4bps to 8%.

Thus the operating profit rose 23% to Rs366.5crore. Other income stood marginally lower at Rs 67.93 crore. After 42% drop in interest charges to Rs 1.02 croreand 11% rise in depreciation cost to Rs71.12 crore, the company registered 21% rise in profit to Rs362.31 crore at the PBT level. After 19% rise in tax provision to Rs124.29 crore, net profit stood at Rs238.02 crore, higher by 22%.

Quarter Performance

Topline for fourth quarter ended Dec 17 rose 9% to Rs 506.08 crore. Bottomline growth which stood at 24% was truncated a bit due to higher tax provision.

The OPM during the fourth quarter rose 410 bps to 20% due to due to decreased raw material and employee cost. Raw material cost coupled with purchase of goods (as a % to sales, net of stock) fell 370 bps to 57.2%. Other expenses (% of sales net of stock) rose 95 bps at 15.9%. Employee expenses fell 160 bps to 7.06%.

Thus the operating profitrose 37% to Rs101.34crore. Other income stood 4% lower at Rs18.48 crore. After 86% dropin interest charges to Rs7 lakh and 3% rise in depreciation cost to Rs17.94 crore, the company registered 36% rise in profit to Rs101.81 crore. After 67% rise in tax provision to Rs 33.87 crore, net profitstood at Rs67.94 crore, higher by 24%.

Further to the merger scheme announced on August 30, 2017 by the Board of Directors ofINA Bearings India Pvt Limited, LuK India Pvt Limited and Schaeffler India Limited, SchaefflerIndia also published the consolidated results on a pro-forma basis for the three companies.

On a pro-forma basis the twelve months' (Jan-Dec 2017) consolidated total income (net)stood at INR 40,216 million, higher by 10.8% compared to the corresponding twelve monthsof 2016.

Shares of Schaeffler India are currently trading around Rs5350 at BSE.