Attached is the transcript of Analyst/Institutional Investor meeting held on 09th April 2025 at 14:00 Hrs (IST)
Awaiting price reaction for this filing.
SKF India held a dedicated call to update investors on its proposed demerger, which will split the company into two separate listed entities — one for the Automotive business and one for the Industrial business (to be named SKF Industrial). Management, led by MD Mukund Vasudevan and CFO Ashish Saraf, explained that the two businesses have fundamentally different macro drivers, customer needs, and manufacturing requirements, making a separation strategically sensible. Key financials shared for FY24: revenue of about INR 4,570 crores, EBITDA margin of 16–17%, PAT of around INR 550 crores, and ROCE of 27.4%. The 5-year CAGR for revenue, EBITDA, and PAT was 13%, 16%, and 18% respectively. Each existing shareholder of SKF India will receive one share of the new SKF Industrial for every share held. On timeline: demerger started in Q4 FY24, SEBI/stock exchange observation letters have been received, NCLT application is being filed, NCLT approval is expected by end of Q3, and listing of the industrial entity is targeted by end of Q4 FY25 — overall a 12–15 month process. Capex guidance of around INR 150 crores annually is expected to continue, with additional investments likely for both businesses, especially Automotive which is running out of capacity. Management also indicated a hope of improving EBITDA margins by 2–3 percentage points going forward in both businesses.
For shareholders, this is a corporate restructuring event that will create two focused listed entities without changing their economic interest — each SKF India shareholder will get an equivalent number of SKF Industrial shares. The demerger could unlock value by giving investors pure-play exposure to either the higher-growth Automotive or the more diversified Industrial business, and management's margin guidance points to potential upside, though execution and NCLT approval risks remain.