Schaeffler India surges with record-breaking profits in mid-2024—What’s driving the growth?

Schaeffler India Limited (BSE: 505790, NSE: SCHAEFFLER), a key player in the motion technology sector, has unveiled its financial results for the second quarter and the first half of the fiscal year 2024. The company’s performance underscores significant growth and solid financial health, reflecting a positive trajectory for the remainder of the year.

Second Quarter Highlights (April – June 2024)

– Revenue from Operations: Schaeffler India reported a net revenue of INR 20,719 million for Q2 2024, marking a substantial 13.3% increase compared to the same quarter in 2023. This growth also represents a 12.0% rise from the preceding quarter (Q1 2024).

– Profit Before Tax (PBT): The company achieved a PBT of INR 3,399 million, reflecting a 6.9% improvement over Q2 2023. The PBT margin for the quarter was 16.4%, slightly down from 17.4% in the corresponding quarter of 2023 but up from 16.5% in Q1 2024.

– Net Profit: Schaeffler India’s net profit for the quarter was INR 2,535 million, with a net profit margin of 12.2%.

Half-Year Performance (January – June 2024)

– Revenue from Operations: For the six-month period, the company recorded a net revenue of INR 39,212 million, an 11.3% increase compared to the same period in 2023.

– Profit Before Tax (PBT): The PBT for the first half of the year was INR 6,456 million, up by 5.5% from the previous year. The PBT margin for this period was 16.5%, down from 17.4% in the first half of 2023.

– Net Profit: The net profit for the six months stood at INR 4,812 million, with a net profit margin of 12.3%, slightly lower than 13.0% during the corresponding period of 2023.

Harsha Kadam, Managing Director and Chief Executive Officer of Schaeffler India, commented on the results, highlighting the accelerated growth in domestic markets and sustained momentum in intercompany exports. He noted that the improvement in margins was supported by strong performance across various business segments and a strategic focus on cost management. Kadam reiterated the company’s commitment to achieving its financial and operational goals while continuing to deliver long-term value to stakeholders. He also emphasised Schaeffler India’s dedication to environmental, social, and governance (ESG) principles.

Schaeffler India’s impressive financial results for Q2 and the first half of 2024 reflect a robust business performance and operational efficiency. The increase in revenue and PBT, coupled with a solid net profit margin, indicates effective cost management and strong market demand. The slight dip in PBT and net profit margins can be attributed to broader economic conditions and market fluctuations but does not detract from the overall positive performance.

The company’s focus on domestic growth and export momentum aligns well with its strategic goals and suggests a strong position to continue its growth trajectory. The emphasis on ESG principles further underscores Schaeffler India’s commitment to sustainable business practices.