- 16 May 2025
- ICICIdirect Research
SKF REVENUE FOR THE QUARTER HAS REMAINED FLATTISH AT 1PERCENT YOY
SKFINDIA - 4614 Change: -33.20 (-0.71 %)News: Revenue for the quarter has remained flattish at 1% YoY (-3% QoQ) to Rs 1213.37 crore. EBITDA margin improved by 600 bps YoY (+1400 bps QoQ) to 23%, led by lower raw material costs. Subsequently, EBITDA was up by 33% YoY (+135% QoQ) to Rs 284.54 crore. PAT stood Rs. 202.7 crore (+16% YoY, +85% QoQ). The FY25 revenue is up 7.7% YoY while EBITDA margin stands at 15% (vs 16% in FY24). FY25 PAT is up only 2.5% YoY to Rs 565.7 crore
View: Profitability substantially increased during the quarter on account of increase in margins due to lower raw material costs. Going ahead, we expect that company’s operational performance to improve in the coming years, led by strong demand traction from higher-growth segments like railways, renewables, industrials, automobile (2W & PV) and gradual recovery in exports. Moreover, company targets to increase localization in the industrial segments to 60% over the next few years (from 40-45% at present), which will help the company in securing more orders and margin improvement.
Impact: Neutral