Timken India tanks 7% after poor Q2 Show

The company reported a net profit of Rs 97.6 crore, down 17.3 per cent on a quarter-on-quarter (QoQ) basis, whereas the EBITDA margin contracted by over 350 basis points to 18.8 per cent on a year-on-year (YoY) basis.

Following the announcement, shares of Timken India plunged almost 7 per cent to Rs 2,800 on Tuesday before recovering to Rs 2,886.10 at 10.15 am. It had settled at Rs 2,997.95 on Monday.

Revenue from operations for the company increased 24.6 per cent from the same period last year to Rs 695.4 crore. However, on a sequential basis, it has reported a revenue of Rs 699 crore, marginally higher than the latest quarter.


Kotak Institutional Equities said that Timken India's EBITDA dropped 23 per cent on a quarterly basis to Rs 130 crore, below the estimates due to a sharp contraction in gross margins.

The brokerage firm expects gross margins to recover over the coming quarters while maintaining a sell rating and a target price of Rs 2,400 on the counter, suggesting a 20 per cent decline from its previous close.

The company’s growth prospects remain strong led by continued recovery in CV segment demand, robust order book in The company’s growth prospects remain strong, led by continued recovery in CV segment demand, robust order book in exports and pickup in railway segment demand, it added. "However, we believe valuations are expensive."

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