Capitaline

Results 19-Oct-22

Analysis

Schaeffler India

Sustains healthy margins

Schaeffler India has recorded 18.07% growth in net sales (including other operating income) to Rs 1756.43 crore in the quarter ended September 2022 (Q3CY2022). Sales of Mobility Components & Related Solutions segment has gone up 28.39% to Rs 1410.93 crore (accounting for 80.33% of total sales). Sales of Others segment has declined 11.10% to Rs 345.50 crore (accounting for 19.67% of total sales).

Profit before interest, tax and other unallocable items (PBIT) jumped 24.38% to Rs 267.26 crore. PBIT of Mobility Components & Related Solutions segment surged 37.38% to Rs 201.97 crore (accounting for 75.57% of total PBIT). PBIT of Others segment declined 3.77% to Rs 65.29 crore (accounting for 24.43% of total PBIT).

PBIT margin of Mobility Components & Related Solutions segment rose from 13.38% to 14.31%. PBIT margin of others segment rose from 17.46% to 18.90%. Overall PBIT margin rose from 14.44% to 15.22%.

Operating profit margin has jumped from 17.78% to 18.16%, leading to 20.60% rise in operating profit to Rs 318.97 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 39.08% to 41.26%. Purchase of finished goods cost fell from 25.38% to 23.07%. Employee cost decreased from 6.36% to 5.99%. Other expenses fell from 12.31% to 12.17%.

Other income jumped 47.05% to Rs 23.16 crore. PBIDT rose 22.09% to Rs 342.13 crore. Provision for interest declined 14.14% to Rs 0.85 crore. PBDT rose 22.22% to Rs 341.28 crore. Provision for depreciation rose 4.23% to Rs 51.71 crore. Profit before tax grew 26.10% to Rs 289.57 crore. Provision for tax was expense of Rs 74.21 crore, compared to Rs 58.82 crore. Effective tax rate was 25.63% compared to 25.62%. Profit after tax rose 26.08% to Rs 215.36 crore.

Commenting on the results, Harsha Kadam, Managing Director, said, “We have progressed well in the first half of the year backed by our strong quarterly performance and are on course despite the ongoing global macroeconomic headwinds. The growth momentum is backed by our diversified portfolio and steady business wins, which enabled registering record revenues. Our focused approach on cost control and countermeasures resulted in resilient margins despite the continuing input cost pressure. This coupled with our capital management and execution capability has helped in realization of financial and operational metrics. We are cognizant of the dynamic yet challenging market conditions and striving to deliver continued performance, while remaining committed to climate protection, society and corporate governance."

Financial performance H1CY2022

Net sales (including other operating income) of Schaeffler India has increased 25.65% to Rs 5072.77 crore in the nine months ended September 2022 (9MCY2022). Sales of Mobility Compoents & Related Solutions segment has gone up 27.30% to Rs 3956.79 crore (accounting for 78.00% of total sales). Sales of Others segment has gone up 20.11% to Rs 1115.98 crore (accounting for 22.00% of total sales).

Profit before interest, tax and other unallocable items (PBIT) has jumped 47.77% to Rs 795.70 crore. PBIT of Mobility Compoents & Related Solutions segment rose 52.89% to Rs 589.24 crore (accounting for 74.05% of total PBIT). PBIT of Others segment rose 34.89% to Rs 206.46 crore (accounting for 25.95% of total PBIT).

PBIT margin of Mobility Compoents & Related Solutions segment rose from 12.40% to 14.89%. PBIT margin of Others segment rose from 16.47% to 18.50%. Overall PBIT margin rose from 13.34% to 15.69%.

Operating profit margin has jumped from 16.95% to 18.71%, leading to 38.68% rise in operating profit to Rs 949.17 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 39.88% to 40.60%. Purchase of finished goods cost fell from 24.98% to 22.78%. Employee cost decreased from 6.90% to 6.17%. Other expenses rose from 12.25% to 12.30%.

Other income up 17.43% to Rs 59.41 crore. PBIDT rose 37.22% to Rs 1008.58 crore. Provision for interest fell 6.43% to Rs 2.62 crore.

PBDT rose 37.39% to Rs 1005.96 crore. Provision for depreciation rose 5.16% to Rs 153.47 crore.

Profit before tax grew 45.41% to Rs 852.49 crore. Provision for tax was expense of Rs 219.24 crore, compared to Rs 147.78 crore. Effective tax rate was 25.27% compared to 25.21%. Profit after tax rose 47.84% to Rs 648.23 crore.

Schaeffler India : Standalone Results
Particulars	2209 (3)	2109 (3)	Var (%)	2209 (9)	2109 (9)	Var (%)	2112 (12)	2012 (12)	Var.(%)
Net Sales	1756.43	1487.58	18	5072.77	4037.29	26	5560.51	3761.84	48
OPM (%)	18.16	17.78		18.71	16.95		17.47	14.25
OP	318.97	264.48	21	949.17	684.41	39	971.54	536.12	81
Other Inc.	23.16	15.75	47	59.41	50.59	17	72.38	60.30	20
PBIDT	342.13	280.23	22	1008.58	735.00	37	1043.92	596.42	75
Interest	0.85	0.99	-14	2.62	2.80	-6	3.67	5.24	-30
PBDT	341.28	279.24	22	1005.96	732.20	37	1040.25	591.18	76
Depreciation	51.71	49.61	4	153.47	145.94	5	197.11	193.97	2
PBT	289.57	229.63	26	852.49	586.26	45	843.14	397.21	112
EO Income	0	0	-	14.98	0.00	-	0.00	0.00	-
PBT after EO	289.57	229.63	26	867.47	586.26	48	843.14	397.21	112
Taxation	74.21	58.82	26	219.24	147.78	48	214.02	106.24	101
PAT	215.36	170.81	26	648.23	438.48	48	629.12	290.97	116
EPS (Rs)*	55.1	43.7		54.3	37.4		40.3	18.6
* EPS is annualized on current equity of Rs 31.26 crore, Face value of Rs 2, Excluding extraordinary items.
EO : Extraordinary items
Figures in Rs crore
Source: Capitaline Corporate Database

Schaeffler India : Standalone Segment Results
	% of total	2209 (3)	2109 (3)	Var.(%)	% of total	2209 (9)	2109 (9)	Var.(%)	% of total	2112 (12)	2012 (12)	Var.(%)
Sales
Mobility Compoents & Related Solutions	80.3	1410.93	1098.95	28	78.0	3956.79	3108.17	27	78.9	4384.99	3006.38	46
Others	19.7	345.50	388.63	-11	22.0	1115.98	929.12	20	21.1	1175.52	755.46	56
Total Reported Sales	100.0	1756.43	1487.58	18	100.0	5072.77	4037.29	26	100.0	5560.51	3761.84	48
Less: Inter segment revenues	0.0	0.00	0.00	-	0.0	0.00	0.00	-	0.0	0.00	0.00	-
Net Sales	100.0	1756.43	1487.58	18	100.0	5072.77	4037.29	26	100.0	5560.51	3761.84	48
PBIT
Mobility Compoents & Related Solutions	75.6	201.97	147.02	37	74.1	589.24	385.41	53	75.4	583.78	242.24	141
Others	24.4	65.29	67.85	-4	25.9	206.46	153.06	35	24.6	190.65	99.91	91
Total PBIT	100.0	267.26	214.87	24	100.0	795.70	538.47	48	100.0	774.43	342.15	126
Less : Interest		0.85	0.99	-14		2.62	2.80	-6		3.67	5.24	-30
Add: Other un-allcoable		23.16	15.75	47		74.39	50.59	47		72.38	60.30	20
PBIT Margin (%)
Mobility Compoents & Related Solutions		14.31	13.38	93		14.89	12.40	249		13.31	8.06	525
Others		18.90	17.46	144		18.50	16.47	203		16.22	13.23	299
PBT		289.57	229.63	26		867.47	586.26	48		843.14	397.21	112

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