Q2 2024 Schaeffler India Ltd Earnings Call Transcript
Key Points
- Schaeffler India Ltd (BOM:505790) achieved a milestone by generating sales revenue of 2000 crores in Q2, marking a 20% growth over the preceding quarter and 13.3% growth compared to the same quarter last year.
- The company registered an EBITDA of 18.6% in Q2 2024, up from 18.3% in Q1 2024, resulting in a profit after tax of 12.2%.
- Schaeffler India Ltd (BOM:505790) received multiple recognitions from key customers like Mahindra and Maruti Suzuki for quality performance and vendor-managed inventory efforts.
- The company saw a strong rebound in the two and three-wheeler sectors, driven by rural demand, which constitutes almost 60% of total production.
- Schaeffler India Ltd (BOM:505790) has been able to sustain its growth momentum in the export market, particularly in Europe and Southeast Asia, despite geopolitical challenges.
- The company faced challenges with free cash flow, particularly due to CapEx investments, resulting in negative cash flow for the quarter.
- There was a noticeable increase in working capital, which rose to 20.2%, indicating a need for better management in succeeding quarters.
- Employee costs were significantly high in Q2, attributed to salary increments, performance bonuses, and new recruitments, impacting overall profitability.
- Some industrial sectors experienced sluggishness in Q2 compared to Q1, particularly in cement and coal production.
- The commercial vehicle sector saw a decline in Q2, and the company is cautious about the geopolitical situation affecting future export growth.
Ladies and gentlemen, good day, and welcome to the Schaeffler India Indiana Limited Q2 CY24 earnings conference call. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Ms. Gauri Kanikar. Thank you, and over to you, ma'am. Ma'am, you're not audible.
Yeah, hi. Hello, good morning. A very warm welcome to this investors call today earnings call. I'm Harsha Kadam, the CEO of Schaeffler India Limited. And along with me is --
Hello, my name is Hardevi Vaziran, and I'm the CFO of Schaeffler India.
So let me begin by taking you through briefly our presentation, which is already put up to you people. So let me
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