Sharp gain in steel prices and intermittent supply issues remain a cause of concern.
Industrial and automotive supplier Schaeffler India has posted 67 per cent jump in its consolidated profit after tax (PAT) for the December quarter at Rs 142 crore.
While the higher revenues did help profit through better absorption of fixed costs, the company said it also benefited from fine-tuned inventory policies that reduced funds locked up in working capital cycle.
Total revenues moved up by 23 per cent to Rs 1,274 crore. The mobility components vertical showed 25 per cent growth on year-on-year basis and 15 per cent growth on sequential basis.
Total revenue from operations (net) for the 12 months (January-December 2020) period was Rs 3,761.90 crore, lower by 13.7 per cent than the corresponding period of 2019.
Profit before tax (before exceptional items) for the period was Rs 397.20 crore, lower by 25.7 per cent. Net profit margin for the year stood at 7.7 per cent.
Managing Director Harsha Kadam said the company had a sharp market recovery in Q4 FY21 that was aided by strong counter-measures to beat the slowdown and successful realisation of new projects.
“The pent-up demand in market continues to drive sustained recovery across all segments. We are optimistic and anticipate to continue this momentum as we move ahead,” he said.
However, a sharp gain in steel prices and intermittent supply issues remain a cause of concern. In addition, there are delays in overseas supplies and fragmented recovery in logistics.
Shares of Schaeffler India Ltd closed on BSE at Rs 5,138.85 on Wednesday — up 2.27 per cent from its previous close.