Schaeffler India (505790) Q2 2024 earnings summary

Executive summary

• Achieved double-digit revenue and profit growth in Q2 2024, with quarterly sales revenue surpassing INR 2,000 crore for the first time and strong momentum in both domestic and intercompany sales.

• EBITDA margin improved to 18.6% in Q2 2024, with profit after tax at 12.2% of sales.

• Recognized by key customers for quality and supplier performance, with continued focus on customer-centricity, business wins, and portfolio expansion across automotive and industrial segments.

• Unaudited standalone and consolidated financial results for the quarter and half year ended June 30, 2024, were approved by the Board on July 23, 2024.

• Statutory auditors performed a limited review and found no material misstatements in the financial disclosures.

Financial highlights

• Q2 2024 standalone sales revenue reached INR 2,771 crore (₹20,719.3 million), up 13.3% year-over-year and 12% sequentially.

• EBITDA for Q2 2024 was INR 385 crore (₹3,848 million), margin at 18.6%; PAT stood at INR 253 crore (₹2,535.4 million), margin at 12.2%.

• Consolidated Q2 2024 revenue was INR 2,106.7 crore (₹21,068.4 million), with EBITDA margin at 18.1%.

• Earnings per share (consolidated, basic) for Q2 2024 was ₹15.7.

• Free cash flow for Q2 2024 was negative at ₹(135) million, reflecting timing differences and CapEx capitalization.

Outlook and guidance

• Exports expected to remain in the 10%-15% range of total sales, with cautious optimism due to geopolitical risks.

• Continued focus on cost management, working capital, free cash flow improvement, and investments aligned with the capex framework.

• CapEx plans on track, with incremental sales already visible and further growth anticipated.

• E-axle program for electric vehicles is on schedule, with customer validation ongoing and no changes to launch plans.

• The acquisition of Koovers is expected to enhance growth and provide synergy potential, supporting strategic initiatives in the aftermarket ecosystem.