SKF India Limited — Important, 13-11-2024: Financial Result Updates

**Consolidated Financial Summary for SKF India Limited**

SKF India has reported a robust performance for the quarter and half-year ended September 30, 2024. Total revenue from operations reached ₹1,744.2 crore, reflecting a significant year-over-year growth of 28%. This uptick can be attributed to increased demand within the automotive and industrial sectors and successful market expansion efforts.

Net profit for the period stood at ₹1,270.3 crore, showcasing a 23% decrease compared to the same quarter last year, mainly due to higher operational costs and tax expenses which increased to ₹338.8 crore. Earnings Per Share (EPS) for the quarter is reported at ₹19.1, down from ₹24.8 in the prior year. The decline in profit signals that although revenues are up, the company's cost base is impacting overall profitability.

Operational costs increased by 21%, primarily driven by rising material costs and employee benefits, coupled with maintenance expenses for expanded manufacturing capacity. The company generated strong cash flows despite significant cash outflows from investing activities, including substantial dividend payouts of ₹642.7 crore.

On the balance sheet, Total Equity as of September 30, 2024, was ₹2,293.2 crore, reflecting a healthy capital position that supports ongoing investments. The company continues to focus on cost efficiencies and innovation, aligning with market trends.

Investor insight suggests a **hold** position, considering current profitability pressures amidst strong revenue growth, balanced with a solid balance sheet for future strategic opportunities. The outlook remains cautiously optimistic, hinging on improved operational efficiency and market recovery.