SKF India Limited — PPTs, 30-06-2025: Investor Presentation

1. Financial Highlights:

SKF India reported FY25 revenue of ₹491.99 Cr with a 10% CAGR over four years. EBITDA rose to ₹84.69 Cr, maintaining margins near 17.2%, while PAT increased to ₹56.58 Cr reflecting steady profitability with a PAT margin of 11.5%. Return on Equity improved to 21.8%, and Net Working Capital remained healthy at 21.9% of revenue. Segment-wise, Automotive revenue surged to ₹172.90 Cr (+19% CAGR), with EBITDA margins stable at ~19%. Industrial segment revenue grew modestly to ₹159.09 Cr with EBITDA margin steady at around 12%. Cash flows from operations were robust at ₹20.31 Cr, supporting growth initiatives.

2. Strategic Initiatives & Growth Drivers:

SKF India is focusing on a demerger to create two focused entities for Automotive and Industrial businesses to unlock value and accelerate growth. Automotive segment is investing ₹4,100–4,600 Mn in capacity expansion by 2030 targeting 2W, EV powertrain bearings, and unitized wheel end bearings across Pune, Haridwar, and Bangalore plants. Industrial business plans ₹8,000–9,500 Mn capex by 2030 including a new Pune plant and channel expansion, leveraging localization and product innovation. Both segments emphasize technology enhancement, increased dealer/distributor networks, and service augmentation.

3. Business Developments:

The company has realigned manufacturing capacity with a structured demerger to optimize focus and capital deployment. Automotive business is aggressively pushing sensor-integrated safety bearings and EV-specific high-performance products, while industrial business targets expansion in heavy machinery, railways, wind power, and general machinery sectors. Expanded aftermarket services and digital sales tools aim to boost penetration and customer retention.

4. Market Position & Competitive Advantage:

SKF India leverages technology leadership, diversified manufacturing base, and a strong OEM customer base (65% automotive, 58% industrial). Leadership in integrated wheel bearing solutions and EV product innovations differentiate the company. Automotive’s top five customers account for over 60% revenues, indicating strong client relationships. Industrial segment benefits from its scale, product localization, and growing footprint in emerging industries like renewables and railways.

5. Investor Implications:

The demerger coupled with targeted capex plans and strong cash flows bodes well for unlocking shareholder value and driving focused growth. Steady margin profile and high ROE support sustainable profitability. Expansion in high-growth EV and aftermarket segments offer positive growth potential, though execution of capacity projects and demerger timelines will require close monitoring. Overall, SKF India is well-positioned to capitalize on evolving automotive and industrial trends with enhanced operational agility.