Schaeffler India conducted a conference call on 19 February 2024 to discuss its financial results for the quarter ended December 2023. Harsha Kadam, MD&CEO of the company addressed the call:

Highlights:

The company has posted 3.4% year-on-year growth in revenues in Q4CY2023. The revenues growth has been impacted to 36% dip in exports and other segment revenues. The domestic revenues growth has remained healthy.

On the economic front, the industrial production sector exhibited steady growth, particularly in the core sectors like cement, coal, electricity and steel production.

The two-wheeler market continued to be muted, while the passenger vehicle and commercial vehicle segments exhibited healthy performance in the automotive sector. The agriculture tractor sector witnessed challenges due to unfavorable weather conditions.

Interim Union budget 2024-25 has given high attention for infra push followed by transport and the segment which the company serves has received greater attention. The steps such as conversions of 4000 bogies to Vande Bharat standard, new rail corridors will enable the growth of the freight segment. Focus on renewable energy is step in the right direction. Viability gap funding for offshore wind energy will help wind to emerge stronger. The electric vehicle segment is next focus area.

The company is seeing demand from coming from the wind sector, while expects good run to continue for automotive segment.

New business wins in select sectors in the automotive as well as industrial segment. The balanced business portfolio has helped to sustain performance for the quarter.

The company is entering 2024 with an uptick from some of the market sectors, with committed efforts to leverage the market growth.

In the automotive Technologies segment, the company has business wins in PVs for valve train and engine components, double clutches for MHCV segment and Gen -3 wheel bearings in PV segment.

In the automotive aftermarket segment the company has continued to add more products with business wins continuing for FEAD/ Timing Kit, TRBs in the PV segment. The focus continued on network penetration and range extension.

Industrial segment focus is on precision and efficiency. The company has witnessed key business win in the DGBBS for electric TWs, RIBBs in raw materials sector and bearings for railway applications.

The capex saw some drop, but the company is remains committed to investments. The company has maintained capex guidance, while working capital continued at optimal levels.

The company expects positive value addition expected ahead.

The company is optimistic about future growth opportunities in the wind and automotive sectors.

Slowdown in exports is owing to global weak demand conditions. The company is seeing some returning of demand from Europe and hopes for exports to improve from Q1CY24.