Schaeffler India posts single-digit profit growth for second straight quarter

Schaeffler AG

26/07/2023 15:10

BENGALURU, July 25 (Reuters) - Automotive and industrial
components maker Schaeffler India  SCHE.NS  posted a 5.1% rise
in profit on Wednesday, its second straight quarter of
single-digit growth, as demand for its industrial products fell
and margins remained flat.     
    Schaeffler India, a unit of Germany-based Schaeffler AG
 SHA_p.DE , said profit rose to 2.37 billion rupees ($28.90
million) for the second-quarter ended June 30, compared to 2.26
billion rupees a year earlier.
    The slowing growth meant the company posted its smallest
quarterly profit growth since June 2020 once again. Profit had
risen 6% in the previous January-March quarter.
    The company's revenue rose 4.6% to 18.29 billion rupees, but
that was offset by a 4.2% rise in total expenses due to higher
costs. 
    Sales in its second-largest business - the industrial
segment, which accounted for around 34% of sales - fell 2.3%,
while sales in its smaller 'Export and others' segment fell
3.5%, denting profit growth.
    The 'Export and others' segment mainly includes exports to
group companies, scrap sales and other operating income, as per
the company. 
    Its net profit margin remained also somewhat flat, inching
up to 13% compared with 12.9% a year earlier.
    However, sales in its mainstay automotive technologies
segment, which accounted for 41% of overall sales, grew 10.3% in
the June quarter.
    This is mostly attributable to the growth in India's auto
industry. According to research firm Nuvama, volumes in domestic
two-wheeler and passenger vehicle segments each grew around 10%
year-on-year in the June quarter.
    Schaeffler India's shares closed 0.64% up ahead of the
results. 
    
($1 = 82.0211 Indian rupees)
    

 (Reporting by Ashish Chandra in Bengaluru; Editing by Janane
Venkatraman)
 ((ashish.chandra@thomsonreuters.com; +91 7982114624;))