Timken India Q1 Results Review - Best Ever Quarter Driven By Higher Volume Growth: Centrum

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Centrum Report.Timken India Ltd. Q1 FY25 print was below our estimates; revenue /Ebitda/adjusted profit after tax grew 9.2%/ 3.8%/6.8%, driven by higher volumes across segments. Timken clocked highest ever June quarter sales. Despite subdued exports due to Red-sea issue, Q1 performance was led by India and driven by,Persistent growth in rail segment (+31%),Strong industrial/auto distribution growth (+29), andProcess segment (+22%).Segment contribution, Railroad: 24%, Off-road: 19%, Distribution: 19%, Process: 19% and Exports: 20%. Management said with strong tech focus, Timken India being preferred partner, and with government focus on rail/wind, these segment to help driving growth. Gross margin cut to 30.4% (-182bp).With higher other expenses (+7%), Ebitda margins settled at 17.9% (-93bp); profit after tax margin declined to 12.2% (-27bp). Timken attributed lower margin to higher input costs, rise in transportation/energy/labor costs, and inferior product mix..We expect Timken India to witness strong demand and maintain market leadership across segment led by,Strong market share in railways,improvement in cement/steel/renewables, andMaintain export share of ~25.We retain 'Add' rating with target price of Rs 4,388 (implying 55 times FY26 earning per share). Rail, industrial distribution & process segments to lead; exports softness continues.Click on the attachment to read the full report:.Saraswati Saree Depot IPO Subscribed 107.52 Times On Day 3.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Timken India Q1 Results Review - Best Ever Quarter Driven By Higher Volume Growth: Centrum

The brokerage expects the company to witness strong demand and maintain market leadership across segment.

NDTV Profit

NDTV Profit

Follow Us

DOWNLOAD THE APP

Timken India Q1 Results Review - Best Ever Quarter Driven By Higher Volume Growth: Centrum

The brokerage expects the company to witness strong demand and maintain market leadership across segment.

Choose a plan

Follow Us

DOWNLOAD THE APP