(Reuters) – Automotive and industrial parts maker Schaeffler India reported a 16.6% rise in first-quarter profit on Tuesday, supported by strong demand for its transmission, braking systems and other auto ancillary products.
The company, a unit of Germany’s Schaeffler, said profit rose to 2.65 billion rupees ($31.1 million) in the quarter ended March 31 from 2.28 billion rupees a year ago.
Revenue from operations increased 14.1% to 21.1 billion rupees, outpacing the 9.8% rise in the cost of materials, such as steel and polymers, which account for over half of its total expenses.
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KEY CONTEXT
The automotive technologies segment, which accounted for 43.7% of Schaeffler India’s revenue in the quarter, counts passenger and commercial vehicles and tractors among its customers. The rest of its revenue comes from three other segments, including an industrial applications segment.
Sales of passenger vehicles grew 2.4% year-on-year in the first quarter, while that of commercial vehicles rose 1.5%, favouring growth for auto ancillaries like Schaeffler India, analysts said.
Smaller peers SKF India and NRB Bearings have yet to report quarterly results.
PEER COMPARISON
Valuation (next 12 Estimates (next 12 Analysts’ sentiment
months) months)
RIC PE EV/EBITDA Revenue Profit Mean No. of Stock to Div
growth (%) growth rating* analysts price yield
(%) target** (%)
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 Buy 9 0.81 3.35
NRB Bearings 19.05 13.79 10.51 22.44 Strong 1 0.62 2.02
Buy
Timken India 41.95 26.73 12.06 15.00 Strong 1 0.72 0.10
Buy
* The mean of analysts’ ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** The ratio of the stock’s last close to analysts’ mean price target; a ratio above 1 means the stock is trading above the PT
JANUARY-MARCH STOCK PERFORMANCE
— All data from LSEG
— $1 = 85.1950 Indian rupees
(Reporting by Meenakshi Maidas in Bengaluru; Editing by Sumana Nandy)
