(Reuters) – Automotive and industrial parts maker Schaeffler India reported a 16.6% first-quarter profit on Tuesday, supporting strong demand for its transmission, braking systems and other automotive assistive products.
The company, a unit in Germany’s Schaeffler, said profits rose to Rs 2.65 billion ($31.1 million) in the quarter ended March 31, from Rs 2.28 crore a year ago.
Revenue from operations rose 14.1% to Rs 21.1 crore, exceeding 9.8% of material costs, such as steel and polymers, accounting for more than half of their total expenditure.
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The automotive technology sector accounted for 43.7% of Schaeffler’s India revenue in the quarter, with passengers and commercial vehicles and tractors counted among its customers. The remaining revenue comes from three other segments, including industrial applications.
Analysts said passenger cars rose 2.4% year-on-year in the first quarter, while commercial vehicle sales rose 1.5%, favoring growth in automotive aid tools such as Schaeffler India.
Smaller peers SKF India and NRB bearings have not reported quarterly results.
Valuation (The Next 12 Estimates (The Next 12 Analysts’ Emotions
RIC PE EV/EBITDA Income Profit Average Stock Number
Growth (%) Growth Grade* Analysts Price Yield
Schaeffler India 43.03 27.74 12.93 18.90 Buy 9 0.89 0.85
SKF India 30.84 22.64 11.42 26.37 Purchase 9 0.81 3.35
NRB Bearing 19.05 13.79 10.51 22.44 Top 1 0.62 2.02
India imken 41.95 26.73 12.06 Top 15.001 0.72 0.10
*Average of analyst ratings, standardized to a strong buy, buy, hold, sell and sell average
**The last ratio of the stock to the average price target of the analyst; a ratio above 1 means the stock is trading above the PT
Stock performance from January to March
– $1 = 85.1950 Indian Rupee
(Reported by Meenakshi Maidas in Bangalore; Editor of Sumana Nandy)
