SKF India Ltd. (NSE: SKFINDIA), a renowned provider of technology and solutions for bearings, condition monitoring, and related services, has announced its unaudited financial results for Q4 FY2024-25 and audited results for the financial year ending March 31, 2025. The company demonstrated operational strength with a consistent upward trajectory in both quarterly and annual performance.

Strong Q4 FY25 Financial Performance

In Q4 FY2024-25, SKF India recorded consolidated revenue from operations of ₹12,134 million, a modest 1% increase over ₹12,034 million from the same quarter in the previous year. More significantly, Profit Before Tax (PBT) surged 20% YoY to ₹2,757 million, compared to ₹2,296 million in Q4 FY23-24. This highlights SKF India’s capability to optimize operational efficiency even in a volatile business landscape.

According to Mukund Vasudevan, Managing Director of SKF India Limited, the quarter’s performance underscores the company’s focused execution, strategic agility, and adaptability in a rapidly changing market.

Full-Year FY24-25: Sustained Growth in a Competitive Environment

For the entire financial year (FY24-25), SKF India achieved consolidated revenue of ₹49,199 million, marking an 8% year-on-year growth from ₹45,701 million in FY23-24. Profit Before Tax reached ₹7,632 million, up 4% from ₹7,358 million the previous year.

This annual growth reflects continued strength in demand, cross-sector performance, and the company's emphasis on operational excellence.

Key Drivers of Performance

1. Sector-wide Demand:
The company reported robust demand across multiple sectors, which was a pivotal factor driving both quarterly and yearly growth.

2. Digitalization and Manufacturing Capabilities:
The company continues to make steady progress in expanding local manufacturing and accelerating digital transformation across its operations, ensuring competitiveness and operational efficiency.

3. Strategic Execution and Agility:
SKF’s results reflect a disciplined approach to execution, enabling it to stay ahead in a dynamic business environment.

Commentary from Leadership

In his official remarks, Mukund Vasudevan emphasized that the performance “is a testament to our focused execution, strategic agility, and ability to navigate a dynamic business environment.” He further added:

“The growth was underpinned by strong demand, solid performance across sectors, and our progress in customer engagement, manufacturing, and sustainability initiatives.”

Strategic Move: Demerger of Industrial Business

In a significant strategic step, SKF India has initiated a demerger of its industrial business, with the objective of forming two fit-for-purpose independent entities. This decision aims to accelerate growth, enhance profitability, and boost operational agility for both businesses.

Key Highlights of the Demerger:

• The Board approved the demerger on December 26, 2024.

• SKF India has received in-principle approvals from NSE and BSE.

• The Scheme of Arrangement has been filed with the National Company Law Tribunal (NCLT).

• The demerger is expected to be completed in 12–15 months, subject to approvals.

Purpose of Demerger:

• Each entity can pursue independent growth strategies.

• Increase customer value and competitiveness.

• Improve transformation speed and operational efficiency.

Focus on Sustainability and Innovation

SKF India continues to make strides in sustainability initiatives aligned with global standards. The company is working toward reducing the environmental impact of its products and processes by making them lighter, more efficient, and longer-lasting. These efforts are coupled with an emphasis on repairability, allowing customers to extend the lifecycle of their machinery.

Global Presence and Legacy

SKF, founded in 1907, is a global leader in rotating equipment performance solutions, with presence in 130 countries and around 17,000 distributor locations worldwide. With over 40,396 employees globally and SEK 103,881 million in annual sales in 2023, the group continues to offer solutions in bearings, seals, lubrication, condition monitoring, and services.

Outlook and Future Plans

The company appears well-positioned for future growth with:

• A clear roadmap for strategic transformation.

• Focus on customer-centric innovations.

• Continued investments in digital tools and sustainable practices.

SKF India remains optimistic that deepening customer relationships, investment in R&D, and strong governance structures will allow it to navigate macroeconomic challenges and leverage emerging opportunities.

Final Thoughts

SKF India’s Q4 FY25 performance and full-year growth serve as a reflection of strong fundamentals and strategic foresight. With a well-planned demerger, enhanced manufacturing capabilities, and technology-driven processes, the company is set to strengthen its leadership in the Indian industrial and automotive sectors.

As the Indian manufacturing ecosystem grows and digitalization accelerates, SKF India’s commitment to efficiency, sustainability, and innovation will likely prove instrumental in delivering long-term value to stakeholders and contributing to industrial transformation in the country.

The Upcoming IPOs in this week and coming weeks are Blue Water Logistics, Unified Data - Tech Solutions, Victory Electric Vehicles International, Borana Weaves, Dar Credit and Capital, Belrise Industries, Wagons Learning.

The Closed IPOs are Accretion Pharmaceuticals, Integrity Infrabuild Developers.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.