Still, the poor monsoons earlier in the quarter had made commercial vehicles such as tractors less affordable for India's rural population, the company said.
27 Oct 2023 | 5565 Views | By Autocar Professional Bureau
Auto components maker Schaeffler India reported an 8% rise in second-quarter profit on Friday, led by the demand for automotive products amid a nascent recovery in rural demand.
Standalone profit for the Indian unit of Germany's Schaeffler AG was Rs 233 crore ($28.00 million) in the quarter ended Sept. ...
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Auto components maker Schaeffler India reported an 8% rise in second-quarter profit on Friday, led by the demand for automotive products amid a nascent recovery in rural demand.
Standalone profit for the Indian unit of Germany's Schaeffler AG was Rs 233 crore ($28.00 million) in the quarter ended Sept. 30, compared with Rs 215 crore a year earlier.
The profit growth marked the third straight quarter of single-digit increase.
The September rainfall made up for a deficit in the first half of the quarter, according to analysts, leading to a recovery in rural demand, particularly in sectors like two-wheelers.
Still, the poor monsoons earlier in the quarter had made commercial vehicles such as tractors less affordable for India's rural population, they said.
Schaeffler, which has the largest market share in the $200 billion Indian bearings industry, said its total revenue rose 5.5% to Rs 1,854 crore, led by a nearly 8% rise in revenue from the automotive technologies segment.
The segment accounts for over half the company's revenue.
Revenue at the industrial segment rose over 4%.
Prices of commodities such as aluminium and steel started easing in the quarter, leading to a drop in input costs from the previous three months. However, the costs increased from a year earlier when inflation was peaking.
Meanwhile, the revenue from the exports and others segment dropped over 28%.
Exports to markets such as in Africa have been hindered by high inflation and macroeconomic uncertainties, pushing the sales volumes down for equipment and auto parts makers.
Schaeffler's shares settled 0.7% higher after the results.