SKF India - Q1FY21 First Cut - ICICI Securities

(CMP: Rs. 1552 MCap: Rs. 7673 crore)

SKF India registered dismal numbers for Q1FY21 as manufacturing activities were disrupted across the value chain. Tracking this, production was halted for more than 50 days at SKF. June brought in some green shoots, but was short-lived on account of regional lockdowns.

Q1FY21 Earnings Summary

- Revenue for the quarter came in at Rs. 301.2 crore, down 61.2% YoY (vs I-direct estimate of Rs. 351 crore). Performance for the quarter is reflective of production loss of more than 50 days. However, on the positive side, the company has won significant orders for Rotating Equipment Performance (REP) offerings in the industrial sector

- Gross margins remained stable at 39% vs 39.7% YoY. However, negative operating impaired the operating performance, as SKF registered an EBIDTA loss of Rs. 0.6 crore. Employee cost declined 11.8% YoY while other expenses declined 50.5% in Q1FY21

- Tracking its operating performance, SKF ended the quarter with a loss of Rs. 0.25 crore. Other income came in at Rs. 15.3 crore while there was a tax reversal of Rs. 0.08 crore during the quarter

We would come out with a detailed report post the conference call.

Shares of SKF India Ltd was last trading in BSE at Rs.1580 as compared to the previous close of Rs. 1561.45. The total number of shares traded during the day was 4294 in over 872 trades.

The stock hit an intraday high of Rs. 1580 and intraday low of 1534.4. The net turnover during the day was Rs. 6683040.

Source : Equity Bulls

Keywords