SKF India is a leading technology and solutions provider of bearings, seals, lubrication systems and services.
The company’s revenue from operations declined 7.8 per cent to Rs 707 crore from Rs 768 crore in the corresponding quarter of previous fiscal. Net profit was down 42 per cent to Rs 21.5 crore against Rs 88.4 crore in the year-ago quarter. Earnings before interest, tax, depreciation, and amortisation (Ebitda) margin came in at 10.3 per cent, down 550 basis points on year-on-year basis.
The management said it continues to see muted demand in the industrial segments, and de-growth across automotive segments.
Private consumption has still not picked up to our expectations, and this has had a contagion effect on demand from both new projects and the after—market, the firm said.
The company said it expected a demand uptick in the second half of the financial year 2020-21 (FY21). “Overall, we remain optimistic that that we are nearing the end of cyclical downturn and expect to see a return to growths in both revenue and profitability in the coming quarters,’ it said.
With today’s fall, SKF India's stock has slipped 12 per cent from its 52-week high level of Rs 2,313 on January 16, 2020, against 2 per cent fall in the S&P BSE Sensex during the period.
At 12:34 pm, the stock was down 6 per cent at Rs 2,047, as compared to 0.35 per cent decline in the benchmark index. A combined 35,748 shares have changed hands on the counter on the BSE and NSE so far.