The shares of the anti-friction bearings manufacturer gained up to 7 percent after the company’s net profit and revenue increased by 109 percent and 46 percent respectively in the fourth quarter.
With a market capitalization of Rs 26,119.33 crore, the shares of Timken India Ltd were trading at Rs 3,474.20 per share, increasing around 4 percent as compared to the previous closing price of Rs 3,344.05 apiece.
Looking into the company’s performance, Timken India Ltd’s revenue increased by 46 percent on a quarter-on-quarter basis from Rs. 622.7 crore in Q3FY24 to Rs. 908.5 crore in Q4FY24. Further, revenue increased by 12 percent year on year, from Rs. 809.1 crore in Q4FY23 to Rs. 908.5 crore in Q4FY24.
Timken India Ltd’s net profit increased by 109 percent on a quarter-on-quarter basis, from Rs. 6.75 crore in Q3FY24 to Rs. 14.14 crore in Q4FY24. Further, net profit increased by 35 percent year on year from Rs. 10.45 crore in Q4FY23 to Rs. 14.14 crore in Q4FY24.
The company is setting up a manufacturing facility at a cost of Rs 600 crore in Bharuch, Gujarat for the production of spherical and cylindrical roller bearings. It used to import these products from the parent earlier. The production is anticipated to commence by 2025 and drive sales growth business.
The company’s profitability measures show a decline in return on equity (RoE) from 19.74 percent in FY 21-22 to 19.18 percent in FY 22-23, while, during the same period return on capital employed (RoCE) decreased from 25.06 percent to 24.71 percent. In contrast, the net profit margin (NPM) was 13.92 percent in fiscal year 22-23.
In the company’s recent shareholding pattern, promoters own 57.70 percent while Retail shareholders own a 11.45 percent stake in the company, and domestic Institutional Investors own a 23.62 percent stake.
Timken India Ltd manufactures, distributes, and sells anti-friction bearings, components, accessories, and mechanical power transmission products to a wide range of customers in various industries. It also offered maintenance contracts, refurbishing services, and industrial services.
Written by:- Abhishek Singh
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