Debt free company Schaeffler India declares ₹24 dividend, PAT up 21% in Q3
2 min read 20 Feb 2023, 04:07 PM ISTWith a market capitalization of Rs. 45,812.61 Cr., Schaeffler India Ltd. is a large-cap company that operates in the consumer discretionary industry.
PremiumWith a market capitalization of Rs. 45,812.61 Cr., Schaeffler India Ltd. is a large-cap company that operates in the consumer discretionary industry. With four manufacturing facilities and 11 sales offices, Schaeffler has a sizable presence in India thanks to the three well-known product names FAG, INA, and LuK. The firm announced a dividend of ₹24 per share along with its Q3FY23 earnings, which is kind of like icing on the cake given that it is a debt-free corporation.
Schaeffler India said in a stock exchange filing that the Board of Directors has “1) Recommended a Dividend of Rs. 24/- per Equity Share of face value of Rs. 2/- each. The Dividend for the year ended December 31, 2022 if declared by the Shareholders at the ensuing Annual General Meeting (AGM) shall be paid within 30 days from the date of AGM. 2) Approved convening of 60th AGM of the Company scheduled to be held on Tuesday, April 18, 2023 at 3:30 p.m. IST at Pune, Maharashtra and the closure of the Register of Members and Share Transfer Books of the Company from Wednesday, April 12, 2023 to Tuesday, April 18, 2023, both days inclusive, for the purpose of 60th Annual General Meeting and identifying the list of members eligible for the payment of Dividend."
During Q3FY23, the company declared revenue from operations of ₹1794.65 crore, up by 17.8% YoY from ₹1523.20 Cr in Q3FY22. The revenue growth was recorded on the back of exports and sustained domestic performance, according to the company. Total expenses grew 16.71% YoY to ₹1,503.35 crore during the quarter compared to ₹1288.10 Cr in the year-ago quarter. During the quarter ended December 2022, the company recorded a net profit of ₹230.98 crore compared to ₹190.64 crore recorded in the quarter ended December 2021, representing a YoY growth of 21.2% whereas PAT margins stood at 12.9% aided by broad-based growth across businesses and accelerated growth in exports. The EPS of Schaeffler India reached ₹14.8 in Q3FY23 against ₹12.2 in Q3FY22.
Commenting on the results, Mr. Harsha Kadam, Managing Director, said, “Our quarterly growth momentum continued on the back of favourable sales mix and our emphasis on deploying sustainable countermeasures to enable a strong quality of earnings, while navigating the headwinds in a highly volatile environment. Our annual results for the year were aided by trajectory of wins across our businesses and focus on opertaional efficieny, reflecting our commitment on customer centricity, innovation and agility. As we enter 2023, we stand by our commitment to enhance stakeholder value by working on both our financial and non financial metrics. We wish to thank all our stakeholders for reposing the confidence and continued support.“
The shares of Schaeffler India closed today on the NSE at ₹2,935 apiece, down by 0.27% from the previous close of ₹2,943.00. In the last 1 year, the stock has gained 57.19% and on a YTD basis, it has rallied 7.88% so far in 2023. As per the data of Trendlyne, Schaeffler India has a debt-to-equity ratio of zero making it a debt-free company, whereas it recorded a high Return on Equity(ROE) of 20.5% in FY22 compared to 20% in FY21. During Q3FY23, the company recorded a promoter shareholding of 74.13%, FIIs stake of 4.81%, DIIs stake of 15.04% and a public stake of 6.02%.
