We have made remarkable progress across all our businesses during CY22, achieving revenue of `68,674 million which grew at 23.5% as compared to CY21. Exports grew significantly, reporting an increase of 55.8% compared to last year as we focused on capacity enhancement, re-locations, and leveraging our competence. Our trajectory of business wins continued through the year and we also successfully made inroads into the e-mobility sector. The introduction of products and services across our automotive technologies, automotive aftermarket, and industrial businesses contributed favorably to the revenue growth for our domestic business.
During the year, we achieved an EBITDA of `13,076 million representing a significant increase from `9,950 million in the previous year. Moreover, we were also able to improve our EBITDA margins, which rose from 17.9% to 19.0%. Our EBITDA margins also improved from 17.9% to 19.0%, thanks to a favorable revenue mix, efficiency gains, and sustained countermeasures to offset any input cost pressure and drive accelerated gross profit. This ultimately resulted in a pre-tax profit of `11,770 during CY22 (PBT margin 17.1%), representing a 39.6% surge compared to CY21, as well as a net profit of `8,792 million during CY22, a 39.8% increase compared to CY21. The net profit margin increased to 12.8% from 11.3% in the previous year.
The EPS was `56.3 in CY22, representing a 40% increase from `40.3 in CY21. Furthermore, the RoCE for the year improved to 27%, up from 23% in the previous year, due to optimal utilisation of fixed assets and effective management of working capital.
Our dedicated endeavors to optimising working capital management, particularly in inventory and receivables, alongside the efficient utilization of plant capacities, and prudent capital expenditure, led to the generation of a healthy Free Cash Flow of `3,768 million during the year.
Our journey to maximise shareholder value continued as we closed out CY22 with a Board of Directors recommendation for a dividend of `24 per equity share (with a face value of `2), reflecting a payout ratio of 43%. This ratio aligns with our target dividend payout ratio of 30-50% of the annual standalone Profit After Tax (PAT). We are pleased to have delivered such attractive returns to our shareholders while simultaneously investing in business growth and fortifying our balance sheet. Looking ahead, we remain steadfast in our commitment to providing sustainable, long-term value to our shareholders through a balanced approach that includes both capital appreciation and dividend payments.
We firmly believe that a more comprehensive approach is essential for ensuring the long-term success and sustainability of our business. We understand that our prosperity is intimately linked to the well-being of all stakeholders. Further to our robust financial performance, we have made significant strides in our ESG journey since embarking on it last year. As part of our strategy to create shared value, we are making sustainability integral to our operations.
In CY22, we refined our sustainability strategy by aligning it more closely with the three ESG dimensions: Environment, Social, and Governance. We have developed an ambitious and structured program with long-term goals to advance our commitment to sustainability. We remain steadfast in our efforts to implement end-to-end digitilisation and process automation to amplify our positive environmental impact. Moreover, we understand that corporate governance plays a vital role in driving sustainable growth and long-term value creation. In this regard, we continue to take significant strides toward enhancing our corporate governance practices.
We have made noteworthy progress in adopting the Integrated Reporting (IR) framework, covering all six capitals. This marks our fourth year of reporting in accordance with the IR framework. Additionally, this year we have voluntarily adopted the Business Responsibility and Sustainability Reporting (BRSR) guidelines. I am pleased to present yet another report that equally emphasises both financial and non-financial parameters. Our commitment to this comprehensive reporting approach demonstrates an unwavering dedication to providing our stakeholders with a transparent and holistic view of our performance and progress toward achieving the ESG commitments.
RoCE*
ESG targets
Dividend per share*
* As on December 31, 2022
As we forge ahead into the future, our unwavering commitment to expanding our business remains resolute. This year, we invested `4,990 million in Capex**, with a primary focus on enhancing the capacities for exports as well as driving our growing domestic automotive and industrial businesses.
We are establishing a sustainable and future-ready plant at Hosur (Tamil Nadu) for the automotive business while our Savli (Vadodara) plant will be expanded for the Industrial business.
We have thoroughly reviewed our Capex strategy, taking into account various internal and external factors, and are ambitious to invest `15,000 million over the next three years. We will stay focused on capital efficiency to improve upon resource utilisation and realise optimised returns.
I am gratified by our performance, which was aided by a balanced business mix, broad customer base, diversified offerings, and strong balance sheet. We have made significant progress on our strategic priorities and remain committed to making the necessary investments to ensure continued success. As we enter CY23, I want to reiterate our dedication to executing our strategic focus areas while fulfilling ESG commitments.
I look forward to yet another exciting year. I would like to express my heartfelt gratitude to all our stakeholders for their unwavering support, encouragement, and trust in Schaeffler India's vision to create sustainable value and shape the future.
Satish Patel
Director – Finance & CFO
