Auto parts maker Schaeffler India`s Q4 profit drops on higher input costs
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Auto components maker Schaeffler India reported a nearly 6% fall in fourth-quarter profit on Friday, as expenses rose.
The drop in bottomline of the bearings company mirrors smaller peer Timken India's drop in quarterly profit.
Schaeffler India's profit was 2.17 billion rupees (about $26 million) for the quarter ended Dec. 31, compared with 2.31 billion rupees a year earlier. This was its first profit decline after 13 quarters of growth.
Its automotive technologies division, which develops precision products for passenger and commercial vehicles, and accounts for a bulk of the revenue, rose 9.3%.
The company's raw material costs jumped 15.2% amid higher prices of some metals, including steel, leading to a 5.4% rise in total expenses.
Revenue grew 3.4% to 18.55 billion rupees, the slowest in 14 quarters, according to LSEG data. The company's revenue growth has been slowing over the last few quarters.
It recommended a dividend of 26 rupees per share for the year ended Dec. 31, 2023.
Shares of Schaeffler India closed 1.4% higher ahead of the results.
($1 = 82.9840 Indian rupees)
