The shares of the leading automotive and industrial engineered solutions provider gained up to 11 percent after the company’s net profit increased 42 percent and 32 percent respectively in the fourth quarter.
With a market capitalization of Rs 24,517.52 crore, the shares of SKF India Ltd were trading at Rs 4,959.25 per share, increasing around 8.24 percent as compared to the previous closing of Rs 4, 581.85 apiece.
Looking into the company’s performance, SKF India Ltd’s revenue increased by 10 percent on a quarter-on-quarter basis from Rs. 1,092 crore in Q3FY24 to Rs. 1,203 crore in Q4FY24. Further, revenue increased by 10 percent year on year, from Rs. 1,095 crore in Q4FY23 to Rs. 1,203 crore in Q4FY24.
SKF India Ltd’s net profit increased by 32 percent on a quarter-on-quarter basis, from Rs. 132 crore in Q3FY24 to Rs. 175 crore in Q4FY24. Further, net profit increased by 42 percent year on year from Rs. 123 crore in Q4FY23 to Rs. 175 crore in Q4FY24.
SKF India’s capacity expansion includes augmenting its Pune manufacturing facility with a new state-of-the-art manufacturing line for large-size bearings, enhancing capacity by 40%. This initiative aligns with SKF’s commitment to bolstering its presence in the Indian market and meeting the growing demand for industrial bearings and related solutions.
SKF has a pan India footprint consisting of 6 manufacturing facilities, 12 offices, a supplier network of over 450 plus distributors, and an employee base of more than 1700 dedicated professionals.
The company’s profitability measures show an incline in return on equity (RoE) from 20.94 percent in FY 21-22 to 22.41 percent in FY 22-23, while, during the same period return on capital employed (RoCE) increased from 27.57 percent to 30.83 percent. In contrast, the net profit margin (NPM) was 12.19 percent in fiscal year 22-23.
In the company’s recent shareholding pattern, promoters own 52.58 percent while Retail shareholders own a 11.65 percent stake in the company, and domestic Institutional Investors own a 29.00 percent stake.
SKF India Limited is an Indian firm that primarily provides products, solutions, and services related to rolling bearings, seals, mechatronics, and lubrication systems. The company operates through the Bearings segment. Its products include rolling and mounted bearings, among others.
Written by:- Abhishek Singh
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