• OUTLOOK ARENA
  • VIEWS ON NEWS
  • JULY 29, 2000

SKF Bearings India Ltd net up 2.3% YoY

The company's sales for the 2QFY01 remained flat, while operating expenses dipped by 0.8%, leading to a 3.6% increase in operating profits. As a result the company's operating margins improved from 18.8% in 2QFY00 to 19.5% in 2QFY01.

(Rs m)2QFY002QFY01Change
Sales 889 889 0.0%
Other Income 25 25 0.0%
Expenditure 722 716 -0.8%
Operating Profit (EBDIT) 167 173 3.6%
Operating Profit Margin (%)18.8%19.5% 
Interest 88 63 -28.4%
Depreciation 102 97 -4.9%
Profit before Tax2381800.0%
Other Adjustments360 
Tax 4 3 -25.0%
Profit after Tax/(Loss) 34 35 2.3%
Net profit margin (%)3.9%3.9% 
No. of Shares (eoy) (m) 2.5 2.5  
Diluted number of shares 2.5 2.5  
Diluted Earnings per share*54.455.7 
*(annualised)   

The net profit has grown by 2.3% in the 2QFY01, due to better operating margins, lower interest and depreciation costs. However the net profit has actually grown much more in the 2QFY01, as the previous year 2QFY00's net includes RS 36m on profit on sale of assets. Hence the current years performance is much better. During the current financial year the company plans to sell off its Mumbai office premises, the income from sale of this will be accounted for in the quarter in which this sale takes place.

On the current price of Rs 474 it is trading on 12.2x FY2000 EPS of Rs 38.8

Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA, Canada or the European Union countries, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

Equitymaster Agora Research Private Limited (Research Analyst)
103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407