Schaeffler India Reports Strong Q4 Performance with Double-Digit Profit Growth

Market Performance

Shares of Schaeffler India saw a 3 per cent increase, reaching Rs 3,160 per share on February 28 following the company's release of strong financial results for the December quarter. Despite this rise, the stock has recorded a 7 per cent decline over the past month, whereas the Nifty 50 index registered a 5 per cent drop in the same period.

Financial Performance

Schaeffler India reported notable growth in key financial metrics for Q4:

• Revenue: Increased by 14 per cent year-on-year (YoY) to Rs 2,136 crore, driven by robust demand across multiple segments.
• EBITDA: Increased by 14.2 per cent YoY to Rs 370.2 crore.
• EBITDA Margins: Maintained at 17.3 per cent, indicating stability despite rising input costs, supported by operational efficiencies and a balanced product mix.
• Net Profit: Grew 13.2 per cent YoY to Rs 237 crore.

Corporate Announcements

The Final Dividend of Rs. 28 was announced by the company, having a face value of Rs. 2 per equity share for the Year Ending December 31, 2024. The dividend distribution is subject to approval at the upcoming Annual General Meeting (AGM) and will be disbursed within 30 days post-approval.

Business Overview

Schaeffler India offers various products and solutions in the Automotive and Industrial Sectors, including bearings, components, and integrated systems tailored for automotive and industrial applications.

Management Insights

The company's leadership attributed the Q4 performance to successful new business acquisitions and consistent operational efficiency. The company focused on maintaining financial prudence and navigating external challenges in 2025 while continuing its long-term commitment to value creation.

Summary

Schaeffler India delivered strong financial results in Q4, marked by double-digit revenue and profit growth. Despite market volatility, the company remains committed to operational stability and long-term strategic goals. The proposed dividend reflects its continued commitment to shareholders while sustaining growth in its core sectors.