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News: Revenue increased 11.4% YoY (flat QoQ) to Rs 1077.2 crore. 9MFY23 revenue was up 22.2% YoY. Gross margin improved 589 bps YoY to 41.5% led by correction in raw material prices. EBIDTA margin improved 435 bps YoY to 17.1% led by improvement in gross margins and lower employees cost. 9MFY23 EBITDA margin was at 18.1% (up 304 bps YoY). EBIDTA came in at Rs 184.1 crore, up 49.4% YoY but down 14.2% QoQ. 9MFY23 EBITDA was up 46.8% YoY to Rs 582.3 crore. PAT increased 31.4% YoY to v 116.7 crore. Sequentially, PAT declined 25.1%. 9MFY23 PAT was up 40.7% YoY to Rs 401.7 crore
Views: SKF's performance during the quarter and 9MFY23 has been strong led by healthy growth in revenues and improvement in margins. SKF has been focusing more towards innovation and R&D, which would augur well for the company in the coming period. The company has also got the approval for Class E and Class K bearings to cater to demand from railway fright wagons segment. We believe SKF is well placed to benefit from its focus towards increasing market share in aftermarket products and also increasing indigenisation in industrials segment
Impact: Positive