SKF India - Q4FY21 First Cut - ICICI Direct

(CMP: Rs. 2313 MCap: Rs. 11436 crore)

SKF registered strong performance which was broadly in line with our estimates for the quarter. Sequentially, margin profile seems to have cooled off (base being exceptionally high), however, they still remain buoyant with respect to the larger picture. The company also announced a final divided of Rs. 14.5 per share during the quarter.

Q4FY21 Earnings Summary

- Revenue for the quarter came in at Rs. 847.5 crore, up 38.9% YoY & 3.5% QoQ (vs. I-direct estimate of Rs. 874 crore). Buoyant auto retails during Q4 & industrial pick up aided the performance

- Gross margins came in at 41% during Q4FY21 vs 46.7% QoQ and 37.8% YoY

- EBIDTA margins came in at 17.5% in Q4FY21 vs 22% & 10.1%, QoQ & YoY respectively

- Optically, margins seems to have deteriorated significantly on a sequential basis, however, it is important to note that Q3FY21 margins were an exception to the normal margin profile of the company

- Absolute EBIDTA came in at Rs. 148.3 crore, up 139.6% YoY and down 18% QoQ

- Employee cost improved 11.1% YoY to Rs. 64.6 crore whereas other expenses registered an increase of 22.6% YoY to Rs. 135.3 crore

- Ensuing PAT for the quarter came in at Rs. 107.8 crore, up 39.2% YoY entailing a margin of 12.4%

- During FY21, SKF registered CFO to the tune of Rs. 323.9 crore and ended the year with a total cash balance of Rs. 447.8 crore

Shares of SKF India Ltd was last trading in BSE at Rs.2370 as compared to the previous close of Rs. 2313.25. The total number of shares traded during the day was 2886 in over 645 trades.

The stock hit an intraday high of Rs. 2370 and intraday low of 2212.8. The net turnover during the day was Rs. 6641024.

Source : Equity Bulls

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