Schaeffler India Limited , a leading industrial and automotive supplier, has reported strong financial results for the third quarter, showcasing robust growth and operational improvements.

Financial Highlights

Schaeffler India demonstrated impressive financial performance in the third quarter, with revenue reaching ₹23,601 million, marking a significant year-over-year growth of 13.9%. The company's EBITDA margin improved to 20.2% from 19.7% in the previous quarter, driven by volume gains and fixed cost absorption.

Segment Performance

The revenue growth was primarily supported by the Automotive Technologies segment and intercompany exports. This diversification in revenue streams highlights the company's strong position across various market segments.

Operational Efficiency

Schaeffler India's focus on operational efficiency is evident from its ability to maintain a healthy PAT margin of 13.0%. Additionally, the company generated a robust free cash flow of ₹2,232 million, indicating strong cash management practices.

Business Developments and New Wins

The company reported several notable business developments during the quarter:

• New wins in hydraulic tensioners for passenger vehicles
• Secured contracts for HD clutches in the commercial vehicles segment
• Continued momentum in dampers and clutches

These new business wins across different product lines and vehicle segments demonstrate Schaeffler India's competitive strength and its ability to capture market opportunities.

Product Innovation and Manufacturing Expansion

Schaeffler India has expanded its product portfolio and manufacturing capabilities:

• Launched large-size spherical roller bearings
• Introduced cast steel housings at its Savli, Gujarat facility

These initiatives are likely to enhance the company's product offerings and manufacturing capabilities, potentially opening up new market opportunities.

Quality Recognition

Schaeffler India's commitment to quality has been recognized by key industry players:

• Received the Best Quality Export Parts Award from Escorts Kubota Limited
• Recognized for zero defect supplies by TAFE for the second consecutive year

These accolades underscore the company's focus on maintaining high-quality standards, which is crucial for sustaining long-term relationships with key customers in the automotive and industrial sectors.

Conclusion

Schaeffler India's strong quarterly performance, marked by double-digit revenue growth and improved margins, reflects the company's resilience and strategic focus. The combination of new product launches, quality recognitions, and business wins across various segments positions the company well for continued growth in the automotive and industrial markets.

Schaeffler India Limited, a leading player in the motion technology sector, has reported robust financial results for the third quarter, signaling a strong performance during the festive season. The company's management expressed optimism about maintaining this growth momentum into the fourth quarter.

Q3 Financial Highlights

Schaeffler India's financial performance for the quarter ended September 30 showcased significant year-over-year improvements:

The company's revenue from operations saw a substantial increase of 13.90% compared to the same quarter in the previous year, reaching ₹23,601.00 crore. This growth was primarily driven by strong performance in the Automotive Technologies segment and increased intercompany exports.

Improved Profitability

Schaeffler India's profit before tax (PBT) before exceptional items rose by an impressive 23.90% year-over-year to ₹4,129.00 crore. The PBT margin expanded to 17.50%, up from 16.10% in the corresponding quarter of the previous year, indicating improved operational efficiency and better cost management.

Management's Perspective

Harsha Kadam, Managing Director and Chief Executive Officer of Schaeffler India, commented on the results: "I am pleased to report, yet again, that we registered double-digit growth for the sixth consecutive quarter. Automotive Technologies and intercompany exports aided our performance for the quarter. Quality of earnings strengthened further, underscoring our dedication to capital and operational efficiency."

Q4 Outlook

The company's management expressed optimism about the upcoming fourth quarter, citing several factors that could contribute to sustained growth:

1. GST Reduction Impact: The recent reduction in GST rates has made vehicles, particularly small cars, more affordable. This is expected to drive demand in the automotive sector.

2. Strong Festive Season: Schaeffler India reported a robust performance during the festive period, which typically sees increased consumer spending.

3. Continued Momentum: The company anticipates that the growth momentum will continue into Q4, building on the strong performance of the previous quarters.

Conclusion

Schaeffler India's strong Q3 results and positive outlook for Q4 reflect the company's resilience and ability to capitalize on market opportunities. The consistent double-digit growth over six consecutive quarters demonstrates the effectiveness of its strategies in navigating the dynamic automotive and industrial sectors. As the company moves into the final quarter of the year, investors and market watchers will be keen to see if Schaeffler India can maintain its impressive growth trajectory and deliver on its optimistic projections.