SKF India Limited — PPTs, 19-05-2025: Investor Presentation

1. Financial Highlights:

Net sales rose 1% YoY to ₹11,833 million in Q4FY25, with full-year revenue up 8% to ₹48,305 million. Profit before tax grew 20% YoY in Q4 to ₹2,751 million, lifting PBT margin by 376 bps to 23.3%. For the year, PBT increased 4% to ₹7,632 million, though margins dipped 60 bps to 15.8%. Industrial and Automotive segments made up 54% and 39% of Q4 sales, respectively; exports accounted for 7%. Higher net working capital weighed on operating cash flow, which declined 85% in Q4 and 67% for the year, with cash conversion at 21.6%.

2. Strategic Initiatives & Growth Drivers:

The company is advancing a demerger to form two focused entities—Automotive and Industrial—designed to unlock value via sharper management focus, better manufacturing efficiency, and targeted capital allocation. The Industrial unit plans a new manufacturing plant to boost expansion and operational agility.

3. Business Developments:

No recent acquisitions or partnerships. The key development remains the ongoing demerger, with strategic division of infrastructure and facilities to enable autonomous growth for each business.

4. Market Position & Competitive Advantage:

SKF India’s scale and innovation across Industrial and Automotive sectors support its leadership. The demerger is expected to enhance agility, customer responsiveness, and financial clarity, strengthening the entities’ competitive positioning.

5. Investor Implications:

Focused structural changes and margin improvements suggest positive growth potential. However, rising working capital and cash flow pressures present execution risks that investors should monitor during this transition.