Schaeffler's India unit Q2 profit rises on robust demand

Schaeffler AG

27/10/2023 11:22

BENGALURU, Oct 27 (Reuters) - Auto components maker
Schaeffler India  SCHE.NS  reported an 8% rise in second-quarter
profit on Friday, led by the demand for automotive products amid
a nascent recovery in rural demand.
    Standalone profit for the Indian unit of Germany's
Schaeffler AG  SHA_p.DE  was 2.33 billion rupees ($28.00
million) in the quarter ended Sept. 30, compared with 2.15
billion rupees a year earlier.
    The profit growth marked the third straight quarter of
single-digit increase.
    The September rainfall made up for a deficit in the first
half of the quarter, according to analysts, leading to a
recovery in rural demand, particularly in sectors like
two-wheelers.
    Still, the poor monsoons earlier in the quarter had made
commercial vehicles such as tractors less affordable for India's
rural population, they said.
    Schaeffler, which has the largest market share in the
$2-billion Indian bearings industry, said its total revenue rose
5.5% to 18.54 billion rupees, led by a nearly 8% rise in revenue
from the automotive technologies segment.
    The segment accounts for over half the company's revenue.
    Revenue at the industrial segment rose over 4%.
    Prices of commodities such as aluminium and steel started
easing in the quarter, leading to a drop in input costs from the
previous three months. However, the costs increased from a year
earlier when inflation was peaking.
    Meanwhile, the revenue from the exports and others segment
dropped over 28%.
    Exports to markets such as in Africa have been hindered by
high inflation and macroeconomic uncertainties, pushing the
sales volumes down for equipment and auto parts makers.
    Schaeffler's shares settled 0.7% higher after the results.
    
($1 = 83.2250 Indian rupees)

 (Reporting by Varun Vyas in Bengaluru; Editing by Dhanya Ann
Thoppil)
 ((varunvyas.hebbalalu@thomsonreuters.com;))