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Schaeffler India Ltd (BOM:505790) Q4 2024 Earnings Call Highlights: Strong Revenue Growth ...

In This Article:

  • Revenue: INR2,082 crores in Q4, a 12.2% increase from Q4 2023; 0.5% growth from Q3 2024.

  • EBITDA Margin: Improved to 18.8% in Q4 from 18.5% in the preceding quarter.

  • Profit After Tax: INR249 crores in Q4, representing a 12% margin.

  • Free Cash Flow: INR163 crores in Q4, improved from Q3 2024.

  • Annual Revenue: INR8,076 crores for the 12-month period, a 12.2% year-on-year growth.

  • Automotive Technology Growth: 11.3% growth over the 12-month period.

  • Industrial Solutions Growth: 14.3% growth over the 12-month period.

  • Exports Growth: 23.5% growth in Q4 compared to the preceding quarter of last year.

  • Dividend Payout: INR28 per equity share, a 45% payout ratio.

Release Date: February 28, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Schaeffler India Ltd (BOM:505790) achieved a 12.2% year-on-year revenue growth in Q4 2024, demonstrating strong performance compared to the previous year.

  • The company received three significant awards from customers for maintaining a resilient supply chain, digital transformation, and excellence in new product development.

  • The automotive sector showed a rebound with a 4% growth in Q4, contributing to an annual growth rate of 3%.

  • Schaeffler India Ltd (BOM:505790) reported an improvement in EBITDA margin to 18.8% in Q4 2024, up from 18.5% in the previous quarter.

  • The company announced a 45% dividend payout, resulting in INR28 per equity share, reflecting a commitment to shareholder returns.

Negative Points

  • Q4 2024 was challenging due to a volatile business environment and uncertainty, impacting overall performance.

  • The consumer price index increased to 5.6% in the last quarter, indicating ongoing concerns about food inflation in India.

  • Commercial vehicle sales remained negative at 4.8% annually, despite a slight pickup in the last two months of Q4.

  • The company experienced a slight decline in aftermarket demand due to liquidity issues and a shift towards OEM services.

  • Schaeffler India Ltd (BOM:505790) plans to moderate CapEx spending due to muted demand from export markets, particularly Europe.

Q & A Highlights

Q: Could you provide an update on the EXL project and its localization status? A: Yes, we have started localizing the EXL production by bringing in machines in phases. We are waiting for our customers to launch the products, which will soon be available in the market. - Harsha Kadam, CEO

Q: What are the CapEx plans for CY '25 and CY '26, considering the current demand environment? A: We will moderate CapEx slightly, maintaining it at 10%-20% lower than the average of INR500 crores over the last four years. The focus will be on CapEx efficiency to fully realize past investments. - Hardev Vazirani, CFO