SKF India Ltd. share price target

New Products & Railways Opportunity: Q2FY19 results came in line with our estimates and earnings for Q2FY19 grew by 14.0% YoY due to improved volumes from automotive segment.

ICICI Securities Ltd | Retail Equity Research SKF India (SKF) reported healthy Q2FY19 results that were broadly in line with our estimates. Revenues grew 12.7% YoY at | 766 crore. We expected revenue of | 769.1 crore for the quarter. EBITDA margins came in at 16% vs. 16.3% YoY. Lower margins were on account of lower gross margins and higher proportion of (low margin) traded goods during the quarter. Gross margins declined ~80 bps YoY. Traded goods as % of topline increased to 31.5% vs....

Railway Segment to Drive Growth Ahead: Earnings for Q1FY19 grew by a 25.8% YoY owing to improved volumes and YoY EBITDA margin expansion of 133 bps. YoY revenue grew by 13.3% accompanied by an EBITDA growth of 24%.

EBITDA grew 24% YoY to | 116 crore (our estimate: | 113 crore). This was due to gross margin expansion of 70 bps YoY. Higher margins were despite higher proportion of traded goods for the quarter. We believe higher margins were on account of improving utilisation. Employee expenses grew muted at 5.8% YoY. Accordingly, EBITDA margins came in at 15.4% (14% in Q1FY18, 15.1% in Q4FY18). We expected margins of 15.1% for the quarter PAT came in at | 80.9 crore, up 25.8% YoY primarily due to higher...

Full year FY18 EPS grew by 23.9% on the back of an EBITDA margin expansion(300 bps) due to stable expenses coupled with a revenue growth of 4.5% on account of improved volumes especially in tractors, 2 wheelers followed by truck segment.

EBITDA grew 33.5% YoY to | 106.1 crore. This was due to gross margin expansion of 400 bps YoY. Higher margins were mostly on account of low base effect (higher proportion of traded goods in Q4FY17). Other expenses witnessed a steep jump of 13.7% YoY for...

Railway Segment to Drive Growth Ahead:QoQ EPS grew by 16.5% amid marginal revenue growth of 3.0% aided by EBITDAexpansion of 122 bps. We expect the top line to grow at 6.0% CAGR duringFY17-FY20E; however the EBITDA margin may stabilize at 17% levels with PATmargin stabilizing at 12.3% by FY20E owing to cost rationalization and change in product mix favoring high margin business.

ICICI Securities Ltd | Retail Equity Research SKF India (SKF) reported strong Q3FY18 results, which were above our estimates on the operational front Revenues grew 9.5% YoY to | 700.5 crore (vs. reported growth of...

ICICI Securities Ltd | Retail Equity Research SKF is the leader in the Indian bearing market with ~28% share. We believe the company is stepping on the growth trajectory due to traction in its key segments, auto and industrial. SKF derives ~54% sales from the automotive segment and ~46% of sales from the industrial segment. In the auto segment, the company is witnessing improved demand in HUB-3 bearings with the Indian auto industry moving from first generation bearing to third generation bearing. With a pick-up in auto sales, we...

ICICI Securities Ltd | Retail Equity Research SKF India (SKF) reported mixed Q2FY18 results, which were below our estimates on the topline front but above our estimates on the EBITDA and bottomline front. SKF reported muted revenue growth...