SKP Bearing Industries Limited — PPTs, 03-06-2025: Investor Presentation

1. Financial Highlights:

SKP Bearing Industries reported consolidated revenue of ₹70.33 Cr, up 36.1% YoY, aided by its European acquisition contributing ₹17.73 Cr. EBITDA declined 36.7% YoY to ₹11.04 Cr, with margins dropping to 15.7% from 33.8% due to higher start-up costs in France. Profit after tax fell 72.1% YoY to ₹2.97 Cr. Standalone revenue rose 6.1% YoY to ₹52.6 Cr with stable EBITDA of ₹20.28 Cr. Capacity utilization improved—rollers at 89% and balls at 50%—following completion of Plant III. Consolidated total assets stood at ₹96.75 Cr with equity at ₹51.18 Cr. Capital work-in-progress of ₹14.94 Cr transitioned to fixed assets, enhancing manufacturing capacity.

2. Strategic Initiatives & Growth Drivers:

Commissioning of Plant III ramps up steel ball production and diversifies offerings. The French acquisition, Valette & Gaurand Industries, expanded global reach and strengthened product mix, especially in high-performance rollers and balls. Focus remains on product diversification, lean manufacturing, cost optimization, and automation across India and France. Increased investments in solar and wind generation support sustainability and reduce operational costs.

3. Business Developments:

The 95-year-old French company acquisition added technological synergies and international market access. SKP BIL France’s Zamar plant is operational and scaling production. A dedicated overseas marketing team is driving OEM client acquisition, reflected in exports doubling in FY25. Collaborative process engineering and automation share between India and France enhances efficiencies.

4. Market Position & Competitive Advantage:

SKP is a leading integrated rolling elements manufacturer in India with a diverse portfolio and growing international presence. Its advanced in-house testing and automation capabilities underpin quality and customization advantages. Global expansion positions SKP well to capture the bearing market’s 13.5% CAGR, particularly in automotive and industrial sectors, boosting scale and competitiveness.

5. Investor Implications:

Growth potential is strong given geographic expansion and capacity increases, though near-term margin pressure from European start-up costs presents execution risks. The ramp-up of new capacity and acquired operations offer medium-term upside. Export growth and a strategic shift toward premium products indicate a positive revenue trajectory, reinforced by ongoing efficiency improvements and renewable energy adoption lowering costs.