SKF India Q3 Results Review - Other Income Spurt And Lower Tax Rate Saved The Day: Centrum Broking

SKF AB announced shifting of production to India in the December 2023 results call.

SKF India Ltd. (Source: Company website)
SKF India Ltd. (Source: Company website)

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Centrum Broking Report

SKF India Ltd.'s disappointed once again on YoY revenue growth as well as on gross and Ebitda margin. However, large growth in other income and huge decline in the tax rate allowed the company to clock a YoY growth in profit after tax.

Other noteworthy thing is QoQ recovery of 568 basis points in Gross margin which underscores the volatility on quarterly basis. Revenue has been lower while PAT has been higher than our and consensus estimates.

The highlights of the results have been whopping 985 bps YoY decline in the tax rate to 25.3% and a huge 82% YoY spurt in the other income.

This has resulted in YoY PAT growth of 13.5% to Rs 1,322 million (Centrum–Rs 1,236 million/Consensus-Rs 1,219 million).

Otherwise, profit before tax registered a marginal YoY decline of 1.5%. Revenue up by 1.4% YoY to Rs 10,923 million (Centrum–Rs 11,634 million/Consensus–Rs 11,811 million).

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Centrum SKF India Q3 FY24 Result Review.pdf
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