Bearings-maker Schaeffler India's Q2 profit rises on industrial, railway demand recovery

Schaeffler AG

23/07/2024 13:33

BENGALURU, July 23 (Reuters) - Schaeffler India's  SCHE.NS  second-quarter profit rose as demand from the domestic industrial sector
recovered, the bearings-maker said on Tuesday.
        The company, a unit of Germany's Schaeffler AG  SHA_p.DE , reported an around 7% rise in standalone profit to 2.54 billion rupees ($30.4
million) for the quarter ended June 30.
  
        Its revenue jumped more than 13%, while revenue from its industrial business increased more than 18%, the company 
    said
    .
  
    
    KEY CONTEXT
    Improved demand from railways due to higher orders for freight wagons, and a recovery in the industrial and wind energy sectors benefitted
Schaeffler India's industrial unit, analysts said.
    The segment comprised nearly 43% of total revenue, while auto parts accounted for 33% of revenue.
    Commercial vehicle production fell 1.4% in the April to June quarter, while passenger vehicle production rose 5.8%, the slowest in two quarters,
industry data showed.
    
    PEER COMPARISON
                                  Valuation (next   Estimates (next 12 months)     Analysts' sentiment                                   
                                  12 months)                                                                                             
                       RIC        PE     EV/EBITDA  Revenue growth  Profit growth  Mean rating*  # of analysts  Stock to price target**  Div yield (%)
 Schaeffler India       SCHE.NS   52.87  34.94      14.24           16.77          Buy           8              1.09                     0.67
 Timken India           TIMK.NS   57.95  39.36      15.38           20.86          Buy           6              1.03                     0.06
 SKF India              SKFB.NS   39.34  28.88      11.58           19.35          Buy           9              1.05                     2.33
 NRB Bearings           NBEA.NS   17.50  16.58      13.82           110.31         Strong Buy    2              0.82                     1.46
 * The mean of analyst 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
    
    APRIL-JUNE STOCK PERFORMANCE
    
    -- All data from LSEG
    -- $1 = 83.6908 Indian rupees

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APRIL-JUNE STOCK PERFORMANCE    https://tmsnrt.rs/4cRALcp
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 (Reporting by Varun Hebbalalu in Bengaluru)
 ((varunvyas.hebbalalu@thomsonreuters.com;))