Transcript of the Analyst call held on April 30, 2025
Awaiting price reaction for this filing.
Schaeffler India posted Q1 CY'25 revenue of INR 2,110 crores, up 14.1% year-on-year and 1.3% sequentially. EBITDA hit a record high of INR 407 crores at 19.3% margin, up from 18.8% in the previous quarter, driven by INR 115 crores of gross margin improvement. Profit after tax rose to INR 265 crores (PAT margin 12.6%), and free cash flow strengthened to INR 237 crores. Exports bounced back sharply, growing 20% sequentially and 23.2% YoY, led by Asia Pacific and new European geographies. Capex was moderated to INR 82.5 crores (about half of last year's Q1) as the company focuses on capacity utilization from prior investments. Management confirmed start of series production for the EUR 300 million e-axle order and strong business wins in clutch systems, bearings, railways, and hybrid technology. Localization ratio improved to 76%, and a fifth plant at Shoolagiri is set to begin operations in H2 CY'25.
The record-high EBITDA margin of 19.3% and robust double-digit revenue growth reinforce a positive earnings trajectory, though investors should note that management refused to share segment-wise margins. The strong export recovery, e-mobility ramp-up, and focus on capital efficiency are key positives, while moderated capex signals disciplined growth rather than aggressive expansion.