Dear Stakeholders,
Dear Stakeholders,
I am writing to you with gratitude and a deep sense of pride as I transition from my role as the Chief Financial Officer and Director Finance at Schaeffler India. The past 3 decades with the company in various positions including two decades as a CFO have been a remarkable journey, filled with ever-evolving challenges and exhilarating successes.
In this time, together, we have navigated shifting economic landscapes, embraced technological advancements and sustainable practices. We have redefined the possibilities for the future for motion and mobility. I have been lucky to see the transformation of Schaeffler into a motion technology company. Looking back over the past five years, we have witnessed a 10.6% compound annual growth rate in revenue, a 14.8% increase in exports, 19.8% rise in our profits and 3.5% increase in our employee base. These figures, however, are only a fraction of the story.
The true measure of our success is evident in the spirit of collaboration with our stakeholders, the relentless pursuit of innovation, and the commitment to excellence that define Schaeffler India. We have fostered a culture of empowerment for our customers, employees, partners and suppliers.
As I hand the reins to Hardevi Vazirani, I do so with the utmost confidence. Her proven expertise, strategic vision, and deep understanding of the Company will further propel Schaeffler India on its growth trajectory.
My heartfelt thanks to every colleague, every partner, and every stakeholder who has played a pivotal role in shaping this magnificent legacy. While I move on to new horizons, my bond with Schaeffler India remains untarnished. I will be your ardent supporter, cheering you on as you write new chapters in the Company’s illustrious story.
The future holds immense promise, and I have no doubt that Schaeffler India will continue to soar to even greater heights. Congratulations on all that we have achieved, and best wishes for a future brimming with opportunity and success.
Satish Patel
Director - Finances & CFO
(till 12th February 2024)
Dear Stakeholders,
Dear Stakeholders,
Today, as I address you for the first time, as CFO of Schaeffler India I feel excitement and a sense of healthy trepidation. Taking the helm as CFO and Director Finance in a company as renowned as Schaeffler India is both an immense privilege and a humbling responsibility. Before I embark on this new adventure, I want to extend my heartfelt gratitude to Satish. Your meticulous financial stewardship and insightful guidance have laid the foundation for the robust organisation we stand on today. I am honoured to inherit such a legacy and will strive to build upon it to the best of my abilities.
We performed well in the year 2023 amidst various challenges. Our revenue stood at `72,261 million, a growth of 5.2% as compared to CY22. We continued to record strong growth of 9.2% in our domestic business. Automotive technologies and automotive aftermarket registered double digit growth of 11.7% and 14.8% respectively as compared to the same period last year. The industrial business also recorded a growth of 5.1% despite some of the key sectors being impacted in the first half of the year. We saw exports being impacted during the year due to external economic headwinds and global slowdown.
Our trajectory of business wins continued through the year and we also successfully made inroads into the e-mobility sector. The introduction of new products and services across Automotive Technologies, Automotive Aftermarket, and Industrial businesses contributed favourably to the revenue growth of our domestic business. We enter 2024, with committed efforts to leverage on the market growth opportunities.
Our EBITDA (before exceptional items) for the year stood at `13,528 million, an increase of 3.4% from `13,076 million in the previous year. EBITDA margins for the year stood at 18.7% as compared to 19.0% for CY22. We successfully sustained the quality of our earnings on the back of efficient utilisation and productivity measures. PAT stood at `9,090 million during CY23 (PAT margin 12.6% vs 12.8% in the previous year), representing a 3.4% growth compared to CY22. The Earnings Per Share (EPS) was at `58.2 in CY23, up from `56.3 in CY22.
During the year, we continued to maintain working capital at optimal levels while continuing the trajectory of investments for our capex framework. This has led to the generation of a strong Free Cash Flow (before cash in and outflows for M&A activities) of `4,620 million during the year. We continued our consistent approach to shareholder value creation by announcing a dividend of `26 per equity share (with a face value of `2 per share), reflecting a pay-out ratio of 45% thus maintaining our target pay-out ratio of 30-50% of the annual standalone Profit After Tax (PAT).
While improving our dividends, we focused on our capex framework in sync with our growth plans in India. We remain committed to providing sustainable, long-term value to our shareholders through a balanced approach that includes both capital appreciation and dividend payments. At the same time, we are aware of our responsibility to all stakeholders for true sustainable growth. Thus, we continue to make significant strides in our ESG journey including making sustainability integral to our operations.
As we enter CY24, 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 relentless support, encouragement, and trust in Schaeffler India’s vision to create sustainable value and shape the future.
Hardevi Vazirani
Director - Finance & CFO
