Q3 2024 Schaeffler India Ltd Earnings Call Transcript
Key Points
- Schaeffler India Ltd (BOM:505790) received five prestigious awards, including the Zero PPM award from Toyota and recognition from Skoda Volkswagen for sustainability initiatives.
- The company reported a 12.1% year-on-year increase in sales revenue, demonstrating strong performance despite a challenging market environment.
- Schaeffler India Ltd saw significant growth in the industrial solutions segment, with a 13% year-on-year increase, driven by sectors like renewable energy and railways.
- The company maintained a strong EBITDA margin of 18.5% and generated a positive cash flow of 100 crores in the quarter.
- Schaeffler India Ltd continues to invest in growth opportunities, with a focus on new business development and portfolio expansion in both automotive and industrial sectors.
- The automotive sector showed sluggish demand, with a mere 0.7% growth in passenger vehicles and a 16% decline in commercial vehicles.
- Export business faced challenges, particularly in the European market, resulting in a 14.6% quarter-on-quarter decline.
- The company experienced a dip in EBITDA margin compared to the previous year, attributed to increased employee costs and the absence of one-time income from the previous year.
- High inventory levels in the passenger vehicle segment could impact production numbers in the coming quarters.
- The company's new venture, KRS Innovative Auto Solutions, has yet to break even, with profitability expected only by the end of 2026.
Ladies and gentlemen, good day. And welcome to the Shafer India Limited Q3 cy '24 earnings conference call. As a reminder, all participant lines will be in listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call? Please signal an update by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Miss Gode. Thank you and over to you, ma'am.
Good morning, everyone and welcome to Schaeffler India Limited conference call for the third quarter and nine months in the 30 September 2024.
Today we have with us, Mr Harsha Kadam, our managing director and Chief Executive Officer and MS Hardevi Vazirani, our director of Finance and Chief Financial Officer, Mr Kadam will first take us for a short presentation on the results after which we can open the floor for questions. Thank you and over to you, Mr Kadam.
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