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Automotive and industrial components maker Schaeffler India posted a 5.1% rise in profit on Wednesday, its second straight quarter of single-digit growth, as demand for its industrial products fell and margins remained flat.

Schaeffler India, a unit of Germany-based Schaeffler AG, said profit rose to 2.37 billion rupees ($28.90 million) for the second-quarter ended June 30, compared to 2.26 billion rupees a year earlier.

The slowing growth meant the company posted its smallest quarterly profit growth since June 2020 once again. Profit had risen 6% in the previous January-March quarter.

The company's revenue rose 4.6% to 18.29 billion rupees, but that was offset by a 4.2% rise in total expenses due to higher costs.

Sales in its second-largest business - the industrial segment, which accounted for around 34% of sales - fell 2.3%, while sales in its smaller 'Export and others' segment fell 3.5%, denting profit growth.

The 'Export and others' segment mainly includes exports to group companies, scrap sales and other operating income, as per the company.

Its net profit margin remained also somewhat flat, inching up to 13% compared with 12.9% a year earlier.

However, sales in its mainstay automotive technologies segment, which accounted for 41% of overall sales, grew 10.3% in the June quarter.

This is mostly attributable to the growth in India's auto industry. According to research firm Nuvama, volumes in domestic two-wheeler and passenger vehicle segments each grew around 10% year-on-year in the June quarter.

Schaeffler India's shares closed 0.64% up ahead of the results.