SKF India reports a continuous strong sales growth

2006 February 24, 10:25 CET

Mumbai, February 24, 2006: The Board of Directors of SKF India Limited, India’s leading bearings manufacturing and engineering services company, today approved the Audited Financial Results for the year ended December 31, 2005.

The financial highlights are given below in comparison to last year:

 Net sales for the year ended December 31, 2005 rose to Rs.7813.9 million (5813.1) and for the fourth quarter to Rs.2491.0 million (1631.9). This is a growth of 34% for the year ended December 31st, 2005 and 53% for the fourth quarter. On a comparable basis, the growth for the full year, excluding additional sales due to implementation of Direct Customer Delivery model (DCD) was 26% and for the fourth quarter 24%.

 The Profit before tax (PBT) for the year ended December 31, 2005 amounted to Rs.1030.5 million (883.3). PBT for the fourth quarter 2005 stands at Rs.185.0 million (253.3).

 Net profit for the year ended December 31, 2005 was Rs.640.7 million (566.1). Net profit for the fourth quarter amounted to Rs.102.4 million (157.0).

 Earnings per share for the year ended December 31, 2005 was Rs.12.2 (12.5) and for the fourth quarter at Rs.1.9 (3.5).

The Board Recommended a dividend @ 35% on the paid-up capital.

"During the quarter we introduced the DCD model in order to provide a single window for our customers to the complete SKF product offering and also to continue to provide high service level and customer satisfaction. While the business environment continues to be positive, the results for the quarter have been adversely affected due to expenses related to prior periods. Excluding the non-recurring items, the profit before tax of the present quarter would have been slightly above the third quarter PBT. As per the present outlook, we expect a continuous strong sales growth in 2006" said Rakesh Makhija, Managing Director, SKF India Ltd.

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