Bengaluru: Schaeffler India, a leading automotive and industrial components manufacturer, reported a 16.6% rise in net profit for the first quarter ended March 31, 2025, buoyed by strong demand for its transmission systems, braking components, and other auto ancillary products.

The Indian unit of German engineering giant Schaeffler AG posted a profit of ₹2.65 billion ($31.1 million), up from ₹2.28 billion in the same quarter last year. Revenue from operations climbed 14.1% to ₹21.1 billion, outpacing the 9.8% increase in material costs—mainly steel and polymers—that constitute more than half of the company’s total expenses.

Schaeffler’s growth was primarily driven by its automotive technologies segment, which contributed 43.7% to its quarterly revenue. The segment caters to passenger vehicles, commercial vehicles, and tractors—categories that saw modest but positive growth in the first quarter. Passenger vehicle sales rose by 2.4% year-on-year, while commercial vehicle sales increased by 1.5%, supporting higher demand for auto components.

Despite rising input costs, the company managed to maintain strong margins, benefiting from operational efficiencies and sustained customer demand across sectors.

In terms of market performance and valuation, Schaeffler India trades at a price-to-earnings (PE) ratio of 43.03 and an EV/EBITDA ratio of 27.74 for the next 12 months. Analysts maintain a “Buy” rating on the stock, with a stock-to-price-target ratio of 0.89 and a dividend yield of 0.85%. Smaller industry peers such as SKF India and NRB Bearings are yet to report their quarterly earnings.

The company’s performance underscores the ongoing strength of India’s automotive and industrial segments, despite macroeconomic uncertainties and inflationary pressures on raw materials.Source Mint