Schaeffler India smashes revenue records—Q4 2024 results show double-digit surge

Schaeffler India Limited has reported a 12.2% increase in revenue from operations for the fourth quarter of 2024, reaching INR 20,823 million. This growth not only outpaced the corresponding quarter of 2023 but also reflected a 0.5% rise compared to Q3 2024, highlighting the company’s strong financial performance despite economic headwinds.

For the full year, Schaeffler India‘s revenue stood at INR 80,763 million, marking an 11.8% increase compared to 2023. The company’s ability to drive consistent growth across its automotive and industrial solutions businesses has been instrumental in maintaining its sustained profitability margins and overall market leadership.

What Drove Schaeffler India’s Profitability in Q4 2024?

Schaeffler India’s profit before tax (PBT) before exceptional items for the fourth quarter of 2024 came in at INR 3,387 million, reflecting a 12.7% year-over-year growth. The PBT margin improved to 16.3%, slightly surpassing both Q3 2024 and the corresponding quarter of 2023.

On an annual basis, Schaeffler India posted a PBT of INR 13,175 million, recording a 7.3% increase over the previous year. While sustained profitability margins remained a focal point, the company experienced a slight contraction in its PBT margin, which stood at 16.3% for 2024, down from 17.0% in 2023.

Net profit for Q4 2024 reached INR 2,493 million, with a 12.0% net profit margin. For the full year, net profit stood at INR 9,777 million, translating to a 12.1% margin, compared to 12.6% in 2023. This marginal dip in net margins underscores the challenges posed by inflationary pressures and supply chain dynamics, but Schaeffler India’s strong financial performance remained intact.

What Did Schaeffler India’s CEO Say About the Results?

According to Harsha Kadam, Managing Director and Chief Executive Officer of Schaeffler India, the company has successfully sustained double-digit growth for the third consecutive quarter, leading to a robust annual performance. He attributed this momentum to new business wins, operational efficiencies, and a disciplined approach to cost management.

Kadam emphasized that macroeconomic challenges remain a concern for 2025, yet Schaeffler India is well-positioned to navigate these pressures. He also reiterated the company’s commitment to financial prudence, ensuring stability and long-term shareholder value.

Schaeffler India’s dividend policy remains a testament to its financial strength, with the Board of Directors recommending a dividend of INR 28 per share, reflecting a payout ratio of 45%. This move reinforces the company’s focus on delivering consistent returns to shareholders while maintaining financial discipline and investment in future growth.

What Are the Key Growth Drivers for Schaeffler India?

Schaeffler India’s strong financial performance in 2024 has been supported by multiple factors, including its diversified product portfolio, market expansion strategies, and increasing demand for motion technology solutions. The company’s four manufacturing plants across India, three R&D centers, and eight sales offices enable it to efficiently cater to its customers in both the automotive and industrial sectors.

Its focus on CO₂-efficient drives, electric mobility solutions, and renewable energy technologies has positioned it as a leader in sustainable engineering. The company’s commitment to research and development has further strengthened its competitive advantage, ensuring long-term growth in an evolving industry landscape.

How Does Schaeffler India Compare to Competitors?

Schaeffler India operates in a highly competitive motion technology and industrial solutions market, with players like SKF India and Timken India also vying for market share. However, Schaeffler India’s global expertise, strong supply chain network, and strategic focus on innovation give it an edge over its rivals.

Unlike many competitors that focus on niche segments, Schaeffler India maintains a broad-based approach, catering to automotive, industrial, and aftermarket customers. The company’s focus on operational efficiency and cost control has allowed it to maintain sustained profitability margins despite industry-wide cost escalations.

What Lies Ahead for Schaeffler India in 2025?

Looking ahead, Schaeffler India is expected to continue its growth trajectory by leveraging operational efficiencies, technological advancements, and strategic investments. The company has outlined plans to strengthen its electric mobility segment, expand its industrial automation solutions, and enhance its aftermarket presence.

With rising demand for CO₂-efficient technologies and increased adoption of electric mobility solutions, Schaeffler India is well-positioned to capitalize on emerging opportunities. However, inflationary pressures, currency fluctuations, and global supply chain constraints could pose challenges, requiring a proactive approach to risk management.

Despite these uncertainties, Schaeffler India’s consistent financial discipline, commitment to innovation, and strong market positioning provide a solid foundation for continued growth. Investors will be watching closely to see how the company navigates external pressures while sustaining profitability in the upcoming quarters.