GST transition pauses sales; outlook remains healthy SKF India's 2QFY18 results beat expectations, as EBITDA grew 45% YoY due to a favourable sales mix (mfg goods at 63% vs. 56%) and lower overheads due to inventory reduction undertaken over the past few quarters. Net sales growth was largely in line with expectations at 4% YoY, but adjusting for GST-related changes, sales were up 6% YoY on a like-to-like basis. Barring wind energy, management remains confident of healthy growth in all other segments and maintains its guidance of doubling annual capex to INR 800mn-1,000mn by FY21 as capacity utilisation has reached 95%. Given expensive valuations of 27x FY19E and...