SKF India Limited — PPTs, 09-04-2025: Investor Presentation

SKF India Limited is on a transformative path with its plan to demerge its automotive and industrial businesses. This strategic move aims to enhance operational efficiency by enabling specialized management for both sectors, thus improving customer value and agility. The automotive market is poised for growth, driven by government initiatives targeting electric vehicles and increasing demand for high-performance products. Similarly, the industrial business is set to benefit from rapid urbanization, which is expected to boost sectors like construction and renewable energy.

Financially, SKF India reported substantial strength, with FY24 revenue at ₹45,701 million and a profit after tax of ₹5,518 million. The company's robust cash flow of ₹6,239 million and strong return on capital employed of 27.4% highlight its solid financial health. Post-demerger, shareholders will receive shares in both entities, maintaining their holdings. This creates two focused companies with improved visibility for investors, emphasizing growth and enhancing shareholder returns. Watch closely for further developments as the restructuring unfolds, potentially unlocking significant value.