Schaeffler India surges 6%; hits new high on strong March quarter results

In Q1CY22, the company's profit after tax jumped 48 per cent year-on-year(yoy) to Rs 207 crore from Rs 140 crore in Q1CY21.

Shares of Schaeffler India hit a new high of Rs 2,226, surging 6 per cent on the BSE in Wednesday’s otherwise weak market after the company reported a strong operational performance in the March quarter (Q1CY22).  At 12:27 PM, the stock was trading 2.5 per cent higher at Rs 2,152, as against a 0.86 per cent decline in the S&P BSE Sensex.

The stock of the industrial and automotive supplier has rallied 50 per cent in the past six months, as compared to a 7 per cent decline in the Sensex. In the last one year, it has more-than-doubled, up 105 per cent as against a 16 per cent rise in the benchmark index.

In Q1CY22, the company’s profit after tax (PAT) jumped 48 per cent year-on-year (yoy) to Rs 207 crore from Rs 140 crore in Q1CY21. Revenue grew 19 per cent yoy at Rs 1,568 crore. Earnings before interest, taxes, depreciation, and amortization (ebitda) margin improved to 19.8 per cent from 16.6 per cent on consistently improving business mix coupled with sustained counter measures.

The company’s management said despite the headwinds from rising inflation and emerging geopolitical situation, the year 2022 started well for the company. Balanced business portfolio with traction in exports segment helped the company continue the momentum.

“We delivered resilient margins despite the ongoing market challenges on the back of our sustained countermeasures and improved business mix,” it said.

The company is engaged in the development, manufacturing and distribution of high-precision roller and ball bearings, engine systems and transmission components, chassis applications, clutch systems and related machine building manufacturing activities.

The year 2021 has been a record year for Schaeffler India in terms of business performance. “The company won a healthy order book in all the business segments, which is bound to help us sustain our growth momentum for 2022 and beyond. Various government initiatives to boost the automotive and manufacturing sectors will also enable faster growth for the company,” Schaeffler India said in CY21 annual report.