Q1 2026 SKF India Ltd Earnings Call Transcript
Key Points
- SKF India Ltd (BOM:500472) reported a 6% year-on-year growth in net sales, driven primarily by a 13% increase in the Industrial segment.
- The company has seen excellent growth in the Industrial sector, particularly in railways, wind, and heavy sectors.
- Cash flow has improved by 13% year-on-year, indicating strong financial health.
- The demerger process is expected to create two independent companies, enhancing growth and profitability with tailored management focus.
- The service business, including condition monitoring and remanufacturing, is growing in high double digits, contributing positively to the company's revenue.
- The company's margins have decreased by 530 basis points due to demerger-related costs, increased employee costs, and FX impacts.
- Automotive sales have been flat, with a slight decline of 0.4%, affected by changes in models and a decline in commercial and passenger vehicles.
- Exports have declined by 0.9%, impacted by tariffs and specific industry downturns in Southeast Asia and the Americas.
- The demerger process is incurring significant costs, including IT and consultancy expenses, which are expected to continue for the next 1.5 years.
- The company's guidance indicates muted Industrial growth until late 2027 due to ongoing localization efforts and capacity expansions.
Ladies and gentlemen, good day, and welcome to the SKF India Limited Q1 FY26 earnings conference call. (Operator Instructions) As a reminder, this conference call is being recorded and will be of 45 minutes duration.
With this, I now hand the conference over to Mr. Ashish Pruthi, Head of Marketing and Communications from SKF India Limited. Thank you, and over to you, sir.
Thank you. Good morning, everyone. Thank you for joining us today. With us, we have SKF India's Managing Director, Mr. Mukund Vasudevan; our CFO, Mr. Ashish Saraf; and our Legal Director, Company Secretary, and Compliance Officer, Mr. Ranjan Kumar.
Before I turn the call over to the management, I would like to remind you that in this call, some of the remarks contain forward-looking statements, which are subject to risks and uncertainties, and actual results may differ materially. Such statements are based on management beliefs as well as assumptions made by and on the information currently available to the
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