Mumbai: Bearings maker SKF India Ltd on Tuesday reported a 40% jump in March quarter net profit helped by higher sales and a better product mix.
The company has reported first quarter net profit of Rs 60.95 crore compared with Rs 43.6 crore a year ago. Net sales rose to Rs 630 crore from Rs 500 crore. The company said this is its highest ever quarterly sales.
The firm, a unit of Sweden’s SKF , supplies bearings to the auto and industrial sectors from its plants in Pune, Bangalore and Haridwar.
The Haridwar plant supplies bearings to major auto makers in India including Tata Motors and Hero Honda .
“Our first quarter performance has registered a strong growth across the automotive and industrial sectors,“said Shishir Joshipura, managing director at SKF India.
Its auto and industrial segments contribute almost equally to its sales.
“We have also been able to achieve a sales mix towards more profitable products.”
“Capacity enhancement undertaken last year coupled with ongoing capacity expansion within the existing facilities and manufacturing excellence programs have helped us achieve volume growth and better operational efficiencies,” he added.
SKF which has earmarked a capex of Rs 160 crore in 2011, expects to build two new production lines in its unit at Pune for the automotive and industrial sectors. It is also expanding production at its Haridwar unit.
Its board also approved the sale of assets used in the business of textile machinery components. This business generated sales of Rs 21.4 crore in 2010.
Joshipura said he expects the sale to take place by 2011 end and SKF was in negoatiatons with a potential buyer.
The firm’s shares closed down 3.25% at Rs 610.2 in the Bombay Stock Exchange that closed down 2.44%.