Schaeffler India reports solid growth in 2023, focused on future mobility solutions

Schaeffler India Limited, a leading motion technology company, revealed its financial performance for the fourth quarter and the full year ending December 31, 2023. The company, known for its innovation in the automotive, industrial, and aftermarket sectors, reported a steady increase in revenue and profit, demonstrating resilience and strategic growth amidst challenging market conditions.

For the quarter ending December 2023, Schaeffler India reported a revenue from operations of INR 18,551 million, marking a 3.4% increase from the same period in 2022 and a slight 0.4% increase from the previous quarter. However, the Profit Before Tax (PBT) before exceptional items saw a slight decrease of 2.9% to INR 3,005 million, with the PBT margin standing at 16.2%, compared to 17.2% in the corresponding quarter of the previous year. Net profit for the quarter was INR 2,174 million, with a net profit margin of 11.7%.

Over the full year of 2023, Schaeffler India witnessed a 5.2% increase in revenue from operations, totaling INR 72,261 million. The PBT for the year rose by 5.7% to INR 12,284 million, with the PBT margin slightly improving to 17.0%. The net profit for the year was recorded at INR 9,090 million, showcasing the company’s efficient resource utilization and productivity measures, despite a minor dip in the net profit margin to 12.6%.

Under the leadership of Managing Director Harsha Kadam, Schaeffler India’s balanced business portfolio and continued momentum in key sectors have been pivotal in sustaining revenue growth. Despite an adverse export mix, the company’s domestic business and a trajectory of business wins across sectors contributed to its annual performance. Schaeffler India’s focus on efficient resource utilization and productivity, along with robust cash generation and capex realization, remains critical to its strategy.

Entering 2024, Schaeffler India is optimistic, with an uptick from certain market sectors and committed efforts to leverage market growth. The company’s consistent approach towards dividend payment, with a board-recommended dividend of INR 26 per share, underscores its commitment to long-term value creation for its stakeholders.

With over 60 years of operation, Schaeffler India’s presence in India is marked by its comprehensive range of products and services across its divisions, contributing significantly to the motion technology sector. The company’s focus on innovation, particularly in engine & transmission solutions, chassis, e-mobility solutions, and Industry 4.0 technologies, positions it as a leader in advancing mobility and industrial efficiency.