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Informist, Thursday, Jul. 23, 2026

 

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--CONTEXT: Comments by Schaeffler India's mgmt in post-earnings analyst call
--Schaeffler India: Have increased input inventory to mitigate cost pressure
--Schaeffler India: In talks with customers to pass on high fuel costs
--Schaeffler India: See robust demand for double clutch for tractors
--Schaeffler India:Aim to achieve double-digit growth in industrial business
--Schaeffler India: Working on addressing capacity gap in after-mkt business
--Schaeffler India: Expect positive traction on cost pass-through Jul-Dec
--Schaeffler India: Non-mobility business witnessed double-digit growth Q2
--Schaeffler India: To spend INR 5 bln in capex through Jul-Dec
--Schaeffler India: Arm KRSV Innovative Auto to be EBITDA-positive in 2029

 

By Narayana Krishna and Ruchira Kagita

 

HYDERABAD/MUMBAI – Motion technology and precision engineering company Schaeffler India Ltd. is in talks with its customers on passing on some fuel costs by increasing its product prices, the company's management said in a post-earnings conference call on Thursday.

 

Schaeffler India reported a consolidated net profit of INR 3.26 billion for the June quarter, up over 13% on year, while its revenue from operations rose 17% on year to INR 27.61 billion. Though the company reported healthy growth numbers, margins were muted due to higher input and fuel costs amid geopolitical issues, Schaeffler India's management said.

 

Schaeffler makes products such as roller bearings, clutches, distribution systems and spare parts used in automobile and other industrial sectors.  

 

"...some of the adverse situations that we faced with the LPG (liquid petroleum gas) and the oil prices going up, our input costs have gone up, which is yet to be compensated by the customers, which we are still in discussions with them," the company said.

 

For the June quarter, Schaeffler India reported an earnings before interest, tax, depreciation, and amortisation margin of 19.1% against 19.6% a year ago. The company's total expenditure during the quarter increased 17.5% on year to INR 23.5 billion. The cost of raw materials rose over 34% on year to INR 12.8 billion, putting pressure on overall margins.

 

The company is building an inventory of inputs gradually to mitigate some part of the costs, the management said. As on Jun. 30, the company's inventory value was at INR 2.1 billion, against INR 211 million a year ago.

 

"So to get compensated from the customers is not easy at all. Yes, we are in dialogue with most of the OEMs (original equipment manufacturers). We have already been talking to them, particularly on the input cost increases due to LPG and propane that have gone up because of the situation there in West Asia. Definitely, the dialogue is going on. We will see what we can achieve," the management said. The company expects some positive traction on cost pass-through during Jul-Dec.

 

Schaeffler is aiming at double-digit growth in its industrial business segment, which posted 5% on-year growth in the June quarter. Its non-mobility businesses witnessed double-digit growth during the quarter, the company said. In the after-market business, which is mostly dominated by spare parts, the company is facing capacity constraints, the management said. In the automotive segment, the company is witnessing robust demand for its double clutches used in tractors, the company said. Schaeffler plans to spend INR 5 billion in capital expenditure to address the capacity gaps.

 

The company said its arm KRSV Innovative Auto will turn EBITDA-positive by 2029.

 

At 1158 IST, shares of Schaeffler India were trading at INR 4,087.10 on the National Stock Exchange, down nearly 3% from its previous close.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Avishek Dutta

 

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