Schaeffler India Q4 Results: Firm posts smallest quarterly profit growth in nearly 3 years

Vehicle components maker Schaeffler India Ltd on Tuesday posted its smallest quarterly profit growth since June 2020, hit by a drop in demand and margin contraction.

Shares of the company, a unit of Schaeffler AG, fell as much as 2.7%.

Schaeffler India said its profit climbed 6% to 2.19 billion rupees ($26.7 million) in the first quarter ended March 31, while revenue from operations rose 8% to 16.94 billion rupees.


However, its core profit margin contracted to 18.58% from 19.64% a year earlier, as expenses rose over 9%.

Revenue in the company's industrial segment, constituting nearly 32% of total revenue, fell 8.5% in the quarter.

The company said growth in its automotive business helped mitigate "external headwinds," but did not specify the challenges.

Schaeffler India had reported a nearly 21% rise in its fourth quarter profit