SKF India Faces Financial Challenges Amid Record Sales and Declining Profitability

SKF India has recently undergone a financial trend adjustment, reflecting challenges in its performance metrics for the quarter ending June 2025. Despite achieving a record net sales figure of Rs 1,283.15 crore, the company has faced significant hurdles that have impacted its overall financial standing.
Key indicators reveal that operating cash flow has reached a low of Rs 203.09 crore, which raises concerns about liquidity and operational efficiency. Additionally, the debtors turnover ratio stands at a low of 5.80 times, suggesting potential issues with receivables management. The profit after tax (PAT) has also seen a decline, reported at Rs 118.21 crore, marking a decrease of 16.4% compared to the previous four-quarter average. Other metrics, such as the dividend per share (DPS) and dividend payout ratio (DPR), are at their lowest levels, indicating a tightening of returns to shareholders.

In terms of stock performance, SKF India has experienced a notable decline over various time frames, particularly over the past year, where it has underperformed compared to the Sensex. However, the company has shown resilience over a five-year horizon, significantly outperforming the benchmark index. This juxtaposition highlights the volatility and challenges SKF India faces in the current market landscape.