SKF India Reports December 2024 Financial Results Highlighting Sales Growth Amid Profit Declines

SKF India has recently reported its financial results for the quarter ending December 2024, revealing a complex picture of performance within the bearings industry. The company's net sales reached Rs 1,256.10 crore, marking a notable achievement as it has shown growth each quarter over the last five quarters, indicating a positive near-term sales trend.
However, the financial results also highlight several challenges. The profit before tax less other income (PBT) has recorded a significant decline, standing at Rs 99.55 crore, which is notably lower than the average PBT of the previous four quarters. Similarly, profit after tax (PAT) has also decreased, coming in at Rs 109.50 crore, reflecting a downward trend compared to prior averages. Operating profit has reached its lowest point in the last five quarters at Rs 121.23 crore, and the operating profit margin has also contracted to 9.65%, suggesting a decline in operational efficiency.

Additionally, the debtors turnover ratio has hit a low of 5.89 times, indicating a slowdown in the pace of settling debts. On a more positive note, non-operating income has peaked at Rs 47.51 crore, although the sustainability of this income remains uncertain.

In light of these developments, SKF India has experienced an adjustment in its evaluation, with its score reflecting the current financial landscape.

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