Please find enclosed transcript of Analyst / Institutional Investor meeting held on Monday, 19th May 2025 at 9:30am (IST)
Awaiting price reaction for this filing.
SKF India reported Q4 FY25 sales growth of 1% YoY (muted due to strong Q3 base and export weakness), while full-year FY25 revenue grew ~8% to around INR4,831 crores from INR4,487 crores. PBT margin in Q4 jumped from 11.9% to 23.3%, largely due to a one-time transfer pricing catch-up on traded goods; full-year EBITDA margin stood at ~17.5% (vs 18.1% last year). Industrial segment grew 10% in FY25, automotive 6%, exports 3%, with business mix at 52% industrial, 40% automotive, 8% exports. Management guided PBT margin to remain in the 16%-19% range and expects capex to nearly double from INR130-150 crores to INR250-300 crores over the next 2-3 years, driven by a new industrial-focused Pune plant and capacity expansion. The automotive-industrial demerger is on track with NCLT filing done, and listing is expected by Q4 CY25 or Q3 CY26.
Shareholders should note that the strong Q4 margin print was largely driven by a non-recurring transfer pricing adjustment rather than core operational improvement, which may have lifted sentiment. The medium-term outlook is constructive: a nearly doubling of capex signals growth investments, while the demerger should unlock separate value for the automotive and industrial businesses once listed.