Q1 2025 SKF India Ltd Earnings Call Transcript
Key Points
- SKF India Ltd (BOM:500472) reported net sales of INR11.8 billion for Q1 FY 2024-25, with a balanced revenue mix across industrial (50%), automotive (41%), and exports (8-9%).
- The company has a strong localization strategy, with 60% of its products manufactured locally, aiming to increase this to 65% in the next two to three years.
- The automotive segment is highly localized at 95%, contributing to a stable supply chain and cost efficiency.
- The company is focusing on high-growth segments such as heavy industries, metals, two-wheelers, cars, and tractors, which have shown strong performance.
- SKF India Ltd (BOM:500472) is actively managing its portfolio by pruning less profitable customers and focusing on profitable growth, which is expected to improve margins.
- The wind and rail segments have faced pricing pressures, leading to selective participation and a decline in top-line growth for the wind segment.
- The company experienced a dip in margins in Q2 FY24 due to challenges in the distribution and automotive businesses.
- There is a significant reliance on the unlisted sister company for railway products, with 80% sourced from it, which may impact margins and operational efficiency.
- Global inflation and pricing actions have stabilized, leading to relatively flat margins despite an increase in the manufacturing mix.
- The company faces competitive pressures in the wind and rail segments, which could impact future growth and profitability.
Ladies and gentlemen, good morning, and welcome to the SKF India Limited Q1 FY 2024, '25 earnings conference call. (Operator Instructions)
As a reminder, this conference is being recorded.
I would now like to hand over the conference to Ashish Pruthi from SKF India Limited. Thank you, and over to you, sir.
Thank you. Good morning, everyone. Thank you for joining us today. Today with us, we have SKF India's Managing Director, Mr. Mukund Vasudevan; and our CFO, Mr. Ashish Saraf.
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's beliefs as well as assumptions made by and on the information currently available to the management.
The audience is cautioned not to place undue reliance on these forward-looking statements and making any
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