SKF India (NS:SKFB), in a recent filing with the exchange, said that it has signed a share purchase agreement with ‘Clean Max Enviro Energy Solutions’. The company has shown an agreement to acquire 2,600 fully paid-up equity shares of Rs 10 each which is equivalent to 26% of the total issued and paid-up share capital of Cleanmax Taiyo from Clean Max Enviro Energy Solutions. The acquisition is estimated to be completed by June 30th, 2023.
The objective of the acquisition is mentioned to be energy cost reduction, 100% renewable energy sourcing, and GHG emission reduction.
SKF India’s stock opened its trading hour today at a price of Rs 4,331.80 and is currently trading at Rs 4,306.40. As compared to the previous closing price of Rs 4,316.35, today’s price levels show a downward pattern of around 0.20 percent. Keeping a horizon of a year, the company’s stock has proven to deliver its stakeholders with a return of around 27 percent.
The company is a leading supplier of products, solutions as well as services within the rolling bearing, seals, mechatronics, and lubrication systems.
The company’s product portfolio comprises of bearings, seals, and lubrication systems. It also develops solutions for its customers across automotive and industrial sectors through its 5 technology-centric platforms i.e. bearings and units, seals, mechatronics, lubrication solutions and services.
Coming onto the financials of the company, it can be observed that the revenues as well as the net profits of the company have gone down in the quarter ending December 2022. Revenues marginally went down from Rs 1,078.26 crores in Q2 to Rs 1,077.2 crores in Q3. Net Profits have seen a downward movement from Rs155.95 crores in Q2 to Rs 116.48 crores in Q3.
The profitability ratios of the company have witnessed movements that are contrary to what the above parameters exhibit. ROE figures have moved up from 19.04 percent in FY20-21 to 22.91 percent in FY21-22. ROCE figures have moved from 25.48 percent in FY20-21 to 30.91 percent in FY21-22.
As of the quarter ended December 2022, promoters of the company have kept their holdings stable at 52.58 percent. FIIs have shown faith in the company and increased their stake from 6.36 percent in Q2 to 6.48 percent in Q3.
Written by Amit Madnani
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