Schaeffler India, which makes various components, on the back of revival in demand for automobiles, posted a robust set of earnings for Q1CY21 (Jan to Dec year ending).
Its total income rose 42% (YoY) at Rs.1317 crore and net profit showed a sharp rise of 78%. YoY, we see a lower base effect at play but sequentially, we can see that demand had started tapering down. QoQ, total income was up 3.5% but net profit was down 1.5%.
The company said that while the revenues during the quarter have been one of the best so far, rising commodity costs put pressure on margins, with focus now on cost management. The company feels that the external scenario is quite volatile as the second wave of Covid19 is not showing any signs of ebbing and that can potentially disrupt trade and dampen consumer spirits.
The stock opened at Rs.5379, up almost 4% and went up to Rs.5450.45, which is not too far from its 52-week high of Rs.5550. As against a 2W average trading volume of 372 shares, today already some 1361 shares have changed hands.