Schaeffler India shares climb 3% on double-digit profit growth in Q4

Despite strong Q4, the stock has fallen 7 percent in the past month

Shares of Schaeffler India climbed 3 percent to Rs 3,160 apiece on February 28 after the company posted strong December quarter results.

Despite this surge, the stock has fallen 7 percent in the past month, underperforming the Nifty 50, which declined 5 percent in the same period.

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Schaeffler India’s net profit rose 13.2 percent year-on-year (YoY) to Rs 237 crore in Q4, supported by a 14 percent increase in revenue to Rs 2,136 crore, driven by strong demand across key segments.

Profitability also improved, with EBITDA rising 14.2 percent YoY to Rs 370.2 crore. However, EBITDA margin remained steady at 17.3 percent, suggesting that operational efficiencies and a better product mix helped offset rising input costs.

The company declared a final dividend of Rs 28 per equity share (face value Rs 2) for the financial year ended December 31, 2024. The dividend is subject to approval at the upcoming Annual General Meeting (AGM) and will be distributed within 30 days of the meeting.

Schaeffler India operates in the automotive and industrial sectors, providing a range of products and services including bearings, components, and systems for automotive and industrial applications.

Harsha Kadam, Managing Director and CEO, attributed the company’s strong Q4 performance to new business wins and excellence in quality and delivery.

"We remained resilient despite a challenging market environment. Our prudent financial management will continue as we navigate external headwinds in 2025. Our consistent dividend policy reinforces our commitment to sustainable, long-term value creation for shareholders," Kadam stated.

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