Timken India (522113) Q2 24/25 earnings summary

Executive summary

• Achieved record September quarter revenue of INR 753 crore (₹7,528 million), up 10% year-over-year, driven by strong domestic demand while exports remained subdued due to weak global markets.

• Unaudited financial results for the quarter and half year ended September 30, 2024, were reviewed and approved by the Board and Audit Committee on November 5, 2024.

• The statutory auditor's limited review report is unmodified, confirming compliance with regulatory requirements.

• PBT margin for the quarter was 16.4%, down from 18% in the prior year, impacted by unfavorable product mix and lower export sales.

• Robust cash flow and ongoing strategic investments, notably the Bharuch plant expansion, which is progressing despite weather-related delays.

Financial highlights

• Revenue for Q2 FY25 reached INR 753 crore (₹7,528 million), a 10% increase year-over-year.

• Net profit after tax for Q2 FY25 was ₹899 million, compared to ₹930 million in Q1 FY25 and ₹672 million in Q2 FY24.

• Earnings per share (EPS) for Q2 FY25 stood at ₹11.96, compared to ₹12.80 in Q1 FY25 and ₹8.94 in Q2 FY24.

• Gross margin has moderated to around 39% in recent quarters, down from 41-42% previously, due to product mix, inflation, and cost pressures.

• Total comprehensive income for Q2 FY25 was ₹897 million.

Outlook and guidance

• Rail segment expected to maintain steady growth, with the last quarter of the fiscal year typically being the strongest.

• Anticipates possible recovery in U.S. exports, especially in Class 8 heavy trucks, following positive October trends and post-election stability.

• Management remains optimistic for the second half of the year, citing seasonal and macroeconomic factors.

• The company paid a final dividend of ₹2.50 per equity share during the quarter, as approved at the AGM.