ICICI Direct: SKF India Expected Downswing In Q1, Recovery To Follow
An employee handles steel roller bearings on the assembly line )Photographer Krisztian Bocsi/Bloomberg)

ICICI Direct: SKF India Expected Downswing In Q1, Recovery To Follow


BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Direct Report

SKF India Ltd. reported dismal numbers for Q1 FY21 as manufacturing activities were disrupted across the value chain. Tracking this, production was halted for more than 50 days at SKF.

June saw some green shoots but it was shortlived on account of regional lockdowns. Revenue for the quarter was at Rs 301.2 crore, down 61.2% YoY (versus our estimate of Rs 351 crore).

During the quarter, SKF won some significant orders for rotating equipment performance offerings. Performance for the quarter reflects production loss of more than 50 days.Gross margins stayed stable at 39% versus 39.7% YoY.

However, negative operating impaired the operating performance, as SKF posted Ebitda loss of Rs 60 lakh. Employee cost fell 11.8% YoY while other expenses declined 50.5% in Q1 FY21.

Tracking its operating performance, SKF ended the quarter with a loss of Rs 25 lakh. Other income came in at Rs 15.3 crore while there was a tax reversal of Rs 8 lakh during the quarter.

Click on the attachment to read the full report:

ICICI Direct SKFIndia Q1FY21 Result Update.pdf


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