Auto component major SKF Ltd today reported a 61.6 per cent fall in its profit after tax (PAT) for the quarter ended 31 March 2009, at Rs14.5 crore.
Net sales for the quarter declined 19.4 per cent to Rs315.8 crore as compared to Rs392.1 crore in the corresponding period of the previous year.
Earnings per share at the end of first quarter (not annualised) was 2.8 as compared to 7.2 in the corresponding period of last year.
''The economic downturn that started in the fourth quarter of 2008 continued during this quarter also. The automotive sector showed some signs of recovery in February and March and we hope that this trend continues into the new fiscal year. The industrial segments also remained weak, affected by high inventories and tight liquidity conditions. Going forward we are optimistic that the recent fiscal package provided by the government and the rate cut announced by the RBI will revive demand and spur growth,'' said Rakesh Makhija, managing director of the company.
He said the company is focusing on efficiency and finding innovative ways to remain lean in order to keep costs down. ''Our focus has been heavily on 3C's - customers, cash & cost - and during the quarter we have reduced our inventories so as to be better aligned to the reduced demand scenario,'' he said.
The board of directors of SKF India Limited, today approved the unaudited financial results for the first quarter ended 31 March 2009.
SKF is the leading global supplier of automotive solutions and services in the area comprising rolling bearings, seals, mechatronics, services and lubrications systems. The group also provides technical support, maintenance services, condition monitoring and training.
SKF is present in more than 130 countries, has some 120 manufacturing sites and sales units supported by some 15 000 distributor locations.
With manufacturing plants in Bangalore and Pune, SKF India Ltd has also an associate company called SKF Technologies (India) Pvt Ltd providing sealing solutions.