Pursuant to Regulation 30 clause 15(a)(ii), we are hereby submitting the presentation of Investor Call for an Update on the de-merger of SKF India Limited ("the company") scheduled to be ....
Awaiting price reaction for this filing.
SKF India has shared its investor presentation detailing the proposed de-merger of the company into two separate listed entities: an Automotive business and an Industrial business. Existing shareholders will receive one share of the new SKF Industrials Ltd for every share held, with no change in shareholding. Pro-forma FY24 figures show the Automotive business at Rs 28,979 mn revenue with 18.7% EBITDA margin and 29.1% RoCE, while the Industrial business stands at Rs 16,722 mn revenue with 17.2% EBITDA margin and 24.9% RoCE. The combined entity reported FY24 revenue of Rs 45,701 mn, EBITDA of Rs 8,116 mn, and PAT of Rs 5,518 mn with a net cash position of Rs 12,221 mn. The de-merger timeline progresses from board approval in Q4 FY24 through NCLT approval and listing targeted by Q4 FY25. Management cited different macro dynamics, customer needs, and manufacturing focus as key drivers for the split.
Shareholders will end up holding shares in two listed companies post de-merger, with the Industrial business separately listed as SKF Industrials. The split is expected to unlock value by allowing each business to pursue tailored strategies, and both segments show strong RoCE of 24-29%, which should appeal to focused investors.