Timken India surges 14% on strong March quarter results

Shares of Timken India surged 14 per cent to Rs 2,240 on the BSE in Monday’s trade after the company reported a strong set of earnings, with profit after tax (PAT) more-than-doubling to Rs 12.13 crore in March quarter (Q4FY22), on back of healthy operational performance.

The company engaged in bearings and allied goods & service business had posted profit of Rs 5.30 crore in a year ago quarter. It had profit of Rs 6.98 crore in previous quarter.

The company’s revenue from operations from 40.4 per cent year on year (YoY) and 30.9 per cent quarter on quarter (QoQ) at Rs 667.40 crore. The company registered earnings before interest, taxes, depreciation, and amortization (EBIDTA) margin of 26.9 per cent vs 18.3 per cent YoY & 22.4 per cent QoQ, due to higher gross margins, lower employee cost and other expenses.

Timken’s active operations are in anti-friction bearings, mechanical power transmission products and related services business.

“Timken posted a stellar set of number for Q4FY22 primarily led by growth in industrial segment. Improved gross margins were due to price hike coupled with decent contribution from service segment. EBITDA margins also increased due to operating leverage thus positively impacting PAT. Going forward, Timken is expected to perform better with sustainable margins, new product launches and better performance in Indian CV & PV segment,” ICICI Securities said in a note.

At 10:25 am; Timken traded at Rs 2,231, 13.5 per cent higher as compared to 1.7 per cent rise in the S&P BSE Sensex. The stock hit a 52-week high of Rs 2,301.65 on March 21, 2022.