Business wins, cost management aids Schaeffler India Oct-Dec show

Auto and industrial solutions provider Schaeffler India Ltd today reported healthy growth in key earnings metrics for the December quarter, on the back of new business wins and cost management. The company’s board also recommended a dividend of Rs 28 per share, for the year.

The company clocked a standalone bottomline of Rs 2.49 billion for the December quarter, on a topline of Rs 20.82 billion. While its net profit rose by 12% over the corresponding quarter of 2023, its revenue from operations was 12.2% higher. 

In Oct-Dec, Schaeffler’s earnings before interest, tax, and depreciation was 3.78 billion, up 15% on year, as per Autocar Professional’s calculations. Its EBITDA margin expanded by 40 basis points to 18.1%.

“We sustained double-digit YoY (year-on-year) growth momentum consecutively for the third quarter, resulting also in a double digit growth of our annual performance. This was aided by our focus on new business wins and excellence in quality and delivery,” said Harsha Kadam, Managing Director and Chief Executive Officer of the company. 

“We remained resilient despite a challenging market environment. Our focus on prudent financial management over the year will continue as we navigate the external headwinds entering 2025,” Kadam said.

Among business segments, bearings and industrial solutions contributed the most to the company’s topline in Oct-Dec, followed by automotive technologies, and intercompany exports and others. However, it recorded a contraction in revenue from the vehicle lifetime solutions business. 

The company reported a total revenue of Rs 9.36 billion from bearings and industrial solutions business, and Rs 7.08 billion from automotive technologies business. While its topline from intercompany exports and others business came in at Rs 2.56 billion, and that from vehicle lifetime solutions business was Rs 1.78 billion. 

In Oct-Dec, Schaeffler also recorded an uptick of 12% in overall expenses to Rs 17.80 billion. Its expenses were driven by nearly 3% on year increase in the cost of materials–the biggest expense incurred by the company–and 12% on year jump in purchase of stock in trade. The company’s expense towards employees rose by 10% on year and other expenses rose by 7% on year.

For the year ended December 31, 2024, the company recorded revenue of Rs 80.76 billion, up 11.8% over last year. Its net profit for the period came in at Rs 9.78 billion, up 8% on year. Meanwhile, the net profit margin stood at 12.1% compared to 12.6% during the corresponding period of 2023.