SKF India Ltd
BSE:500472
SKF India Ltd
SKF India Ltd., a subsidiary of the Swedish multinational SKF Group, spins its narrative through the dynamic gears of the automotive and industrial sectors. Established as a leader in the bearings business, the company has embraced innovation to expand its product portfolio, spanning bearings, seals, lubrication systems, and mechatronics. These components are essential for reducing friction, thereby enhancing the efficiency and longevity of machinery across industries. SKF India harnesses decades of expertise to engineer solutions tailored for industries ranging from automotive to aerospace, catering to the demand for higher efficiency and reliability in mechanical operations. The company's deep-rooted understanding of its clients' needs and operational challenges allows it to provide value-added services such as predictive maintenance, which ensures seamless operations and reduces downtime for its clients.
SKF India's storyline is driven by its extensive network of manufacturing facilities, sales offices, and R&D centers distributed across the nation, ensuring a robust local presence. The company generates revenue by selling its products to an expansive array of sectors while also offering service solutions that complement its product offerings. By fostering strong relationships with key OEMs and industrial players and leveraging its technological prowess, SKF India solidifies its competitive edge in the market. This strategic blend of product innovation, market penetration, and customer-centric service positions SKF India as a pivot in India's industrial growth narrative, consistently turning the wheels of progress and profitability.
SKF India Ltd., a subsidiary of the Swedish multinational SKF Group, spins its narrative through the dynamic gears of the automotive and industrial sectors. Established as a leader in the bearings business, the company has embraced innovation to expand its product portfolio, spanning bearings, seals, lubrication systems, and mechatronics. These components are essential for reducing friction, thereby enhancing the efficiency and longevity of machinery across industries. SKF India harnesses decades of expertise to engineer solutions tailored for industries ranging from automotive to aerospace, catering to the demand for higher efficiency and reliability in mechanical operations. The company's deep-rooted understanding of its clients' needs and operational challenges allows it to provide value-added services such as predictive maintenance, which ensures seamless operations and reduces downtime for its clients.
SKF India's storyline is driven by its extensive network of manufacturing facilities, sales offices, and R&D centers distributed across the nation, ensuring a robust local presence. The company generates revenue by selling its products to an expansive array of sectors while also offering service solutions that complement its product offerings. By fostering strong relationships with key OEMs and industrial players and leveraging its technological prowess, SKF India solidifies its competitive edge in the market. This strategic blend of product innovation, market penetration, and customer-centric service positions SKF India as a pivot in India's industrial growth narrative, consistently turning the wheels of progress and profitability.
Revenue Growth: SKF India posted net sales growth of about 6% year-on-year, with Industrial up 13% and Automotive flat or slightly down at -0.4%.
Margin Pressure: Margins declined significantly, down 530 basis points due to demerger-related costs, higher employee expenses, increased depreciation, forex losses, and an unfavorable sales mix.
Demerger Update: The demerger process to split Automotive and Industrial businesses is moving ahead, with shareholder approval received and NCLT approval expected by September; costs and impacts from the demerger will continue for the next 1–1.5 years.
Cash Flow: Net cash flow improved by 13% year-on-year, and the company reduced net working capital from the previous quarter.
Guidance: Management expects muted margins for the coming year due to ongoing demerger costs, with a return to the 16–19% margin range targeted from 2028 onwards.
CapEx & Capacity: Investments continue in both listed and unlisted entities, with major capacity expansions (notably in Pune and Ahmedabad) expected to support growth from 2027–2028.
Industrial Strength: Industrial growth is being driven by railways, selected wind applications, heavy industry, and aftermarket, while service revenues (mainly in Industrial) are growing in high teens but currently contribute 2% of total revenue.
