Hardevi Vazirani
Director - Finance & CFO
Dear Stakeholders,
I am pleased to share Schaeffler India’s financial performance and key achievements for the year 2024 with you all. This year was a testament to our resilience, strategic agility and financial discipline and I am excited to share with you our stories of success and the milestones we achieved. Despite a dynamic economic landscape, we navigated challenges, capitalised on opportunities and strengthened our financial foundation. While the headwinds were strong, we went past hurdles with a strong focus on operational excellence and innovation. Most importantly, our commitment to sustainable growth and value creation remains unwavering.
In 2024, our revenue from operations stood at `80,763 million, a growth of 11.8% amidst modest market growth, as compared to 2023. I am proud to share that despite being in a challenging year, we accomplished these results through close collaboration and stronger relationships with our customers. The Automotive Technologies and Bearings & Industrial Solutions business registered double digit growth of 11.3% and 14.4% respectively, in comparison to the same period last year. The Automotive Technologies business outpaced the market by the trajectory of business wins and close collaborations with customers. The Bearings & Industrial business recorded growth despite some of the key sectors being impacted during the first half of the year. The Vehicle Lifetime Solutions business registered a growth of 3.0% driven by our strategic introduction of new products and strengthened partnerships with distributors. Our intercompany exports were continuously in focus through the year, given the geopolitical situations and slowdown in some economies. However, our targeted efforts to diversify across other key markets within the Schaeffler Group helped us record a double-digit growth of 10.8% in the year 2024, as compared to the same period last year. Our focus on future mobility, broad based introduction of new products across business divisions helped us to onboard new clients, thereby enhancing our revenue earning potential.
Our EBITDA (before exceptional items) for the year stood at `14,969 million, an increase of 10.7% from `13,528 million in the previous year. EBITDA margins for the year stood at 18.5% as compared to 18.7% for 2023. We successfully sustained the quality of our earnings on the back of efficient utilization and productivity measures. We have been focusing on capital infusion for growth and localisation. As we move forward, focus lies on monitoring efficiency and better utilization. PAT stood at `9,777 million during the year 2024, representing a 7.6% growth compared to the year 2023. PAT margin was at 12.1% vs 12.6% in the previous year. The Earnings Per Share (EPS) stood at `62.6 in the year 2024, up from `58.2 in the previous year. During the year, we continued to maintain working capital at optimum levels while ensuring healthy investments for growing our capacities. This has led to the generation of a Free Cash Flow of `2,239 million during the year.
We are happy to share that we announced a dividend of `28 per equity share (with a face value of `2 per share), at a pay-out ratio of 45%, maintaining our target pay-out ratio of 30-50% of the annual standalone Profit After Tax (PAT). We reiterate that we remain committed to providing sustainable, long-term value to our stakeholders through a balanced approach that includes both capital appreciation and dividend payments. At the same time, we are aware of our responsibility towards our stakeholders and continue to make significant strides in our journey to improve environmental, social and governance standards. Today, sustainability is integral to our operations and is a core strategy across the organization. Over the last two years, Schaeffler India Limited has been publishing its Business Responsibility and Sustainability Report (BRSR) in compliance with new regulations from the Securities and Exchange Board of India (SEBI). Recognitions on our sustainability reporting based on our Business Responsibility and Sustainability Report truly bolsters our determination to strengthen our sustainability drive. To enhance transparency and reinforce our commitment to responsible and sustainable business practices, this year we have made further strides in this area by voluntarily opting for reasonable assurance of the BRSR core parameters. We believe that an independent review of the key non-financial disclosures will provide stakeholders with confidence on the organization’s ESG commitments.
Building further to our sustainability strategy and comprehensive risk management, we have taken another significant step forward with the Double Materiality Assessment Report. While we undertook our first financial materiality assessment in 2022, considering the significant developments since then, I am pleased to share our Double Materiality Assessment in this report, covering both impact and financial materiality. I believe this holistic view not only supports our approach towards sustainable business practices but also aligns with broader expectations of transparency and accountability in today’s socially conscious market.
As we enter 2025, I look forward to yet another exciting year of growth and achievements. We will continue to focus on prudent financial management and long-term stakeholder value. I remain grateful to all our stakeholders for their relentless support, encouragement and trust in Schaeffler India’s vision of creating the leading motion technology company through sustainable mobility solutions.
Hardevi Vazirani
Director - Finance & CFO
