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News for India > Business > SKF India shares rally 9% on strong Q4 results, dividend declaration | Stock Market News
Business

SKF India shares rally 9% on strong Q4 results, dividend declaration | Stock Market News

Last updated: May 16, 2025 11:27 am
2 weeks ago
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Q4FY25 Financial PerformanceDividend AnnouncementStock Price TrendAbout SKF India

Shares of SKF India surged nearly 9 percent on Friday, May 16, after the company announced robust financial results for the quarter ended March 2025 (Q4FY25) and declared a final dividend for the financial year. The stock climbed to an intra-day high of ₹4,685.90, driven by strong profitability and improved operating margins.

Q4FY25 Financial Performance

SKF India, a leading player in the abrasives and bearings industry, posted a net profit of ₹275.65 crore in the March 2025 quarter, marking a 20 percent year-on-year (YoY) growth compared to ₹230 crore in the same period last year. Revenue from operations stood at ₹1,213.4 crore, marginally higher than ₹1,203.4 crore a year ago.

The company demonstrated strong cost discipline, with total expenses reducing to ₹950.8 crore from ₹1,009.16 crore. As a result, earnings before interest, taxes, depreciation, and amortisation (EBITDA) surged 33 percent YoY to ₹284 crore, up from ₹213 crore. Sequentially, EBITDA more than doubled from ₹121 crore in Q3FY25.

Margins also saw notable improvement. Gross margin expanded to 49 percent in Q4FY25, up from 41 percent in the same quarter last year and 33 percent in the previous quarter, reflecting SKF’s focus on cost efficiency and premium product offerings.

Dividend Announcement

The company’s board recommended a final dividend of ₹14.5 per equity share for the financial year ended March 31, 2025, reaffirming its shareholder-friendly approach.

Stock Price Trend

Despite Friday’s rally, SKF India shares remain over 36 percent below their 52-week high of ₹7,349, touched in June 2024. The stock has, however, rebounded 32 percent from its 52-week low of ₹3,544, recorded in February 2025. After five consecutive months of decline from October 2024 to February 2025, the stock staged a recovery—rising 4.3 percent in March, 1 percent in April, and over 18 percent so far in May. Nonetheless, it is still down 19 percent over the past year.

About SKF India

Established in 1923, SKF India has transformed from a traditional ball-bearing manufacturer into a holistic engineering solutions provider. The company operates across five core platforms—bearings and units, seals, lubrication, condition monitoring, and maintenance services. Its solutions support clients in improving energy efficiency, reducing friction, and enhancing equipment longevity. With six manufacturing units, 12 offices, a network of over 450 distributors, and a workforce exceeding 1,700 employees, SKF India continues to play a pivotal role in the country’s automotive and industrial sectors.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.



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