SKF India shares surge up to 8% after cost controls aid margin beat in historically strong Q4
Published on 16/05/2025 10:50 AM
SKF India shares surge up to 8% after cost controls aid margin beat in historically strong Q4SKF India's cost controls helped its margin improve. The gross margin improved both, sequentially and from the previous year. It expanded to 49% from 33% in the previous quarter and from 41% in the year-ago period.By Sudarshan Kumar May 16, 2025, 10:50:56 AM IST (Updated)2 Min ReadShares of SKF India Ltd. gained as much as 8% on Friday, May 16, after the company reported healthy fourth quarter earnings, with a sharp improvement in margin.
The fourth quarter is historically strong for the company.
SKF India's profit in the fourth quarter increased by 16% to ₹203 crore from the previous year's ₹175 crore. It was also higher by 85% sequentially from ₹109.5 crore in the previous quarter.
Its revenue was up by a percent at ₹1,213 crore from ₹1,203 crore in the year-ago period. Sequentially, the revenue declined 3% from ₹1,256 crore in the third quarter.
SKF India's earnings before interest, taxes, depreciation and amortisation (EBITDA) was up 33% at ₹284 crore from ₹213 crore in the previous year. In the third quarter, the company's EBITDA was at 121 crore.
SKF India's margin in the March quarter expanded to 23.5% from 17.7% in the same period last year and from 8.1% in the third quarter of FY25.
SKF India's cost controls helped its margin improve. The gross margin improved both, sequentially and from the previous year. It expanded to 49% from 33% in the previous quarter and from 41% in the year-ago period.
The raw material costs declined 26% sequentially and were down 13% from the previous year.
Mukund Vasudevan of SKF India told CNBC-TV18 that the margin expansion has come from the industreals and auto segments as well. He said auto is a relatively small portion of the business.
Vasudevan said the profit before tax growth will be in 16-19% range. He said the company will see high single digit-low double digit revenue growth in the financial year 2026.
Shares of SKF India Ltd gained 8.4% to hit an intraday high of ₹4,688 apiece on Friday, May 16. The stock was up nearly 5.75% at ₹4,572.9 apiece at 10.30 am
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