Q2FY24 Earnings Review

Institutional Research
India I Auto Ancillary
15 November 2023

Auto Ancillary NIFTY 50: 19,444

BSE Sensex: 64,934
Frugal revenue growth impacted performance
Bearing companies reported subdued set of results for Q2FY24 with an aggregate Stock price performance (%)*
revenue/EBIDTA/PAT clocked a YoY growth of 3.3%/-10%/-11% respectively. The Company Name 1 Mth 3 Mth 6 Mth 1 Yr
same have registered a YoY growth of 1.1%/-7.2%/-3.7% against Centrum Skf India Ltd (12.4) (10.9) 5.2 (7.4)
estimates and -5.8%/-17.4%/-22.5% against Consensus estimates. This affirms our Timken India Ltd (3.5) (12.5) (6.9) 2.0
present premise that coming few quarters likely to witness far lower financial Schaeffler India Ltd (12.2) (9.4) (2.9) (7.4)
performance as against FY22/FY23. Frugal revenue growth has been the main Source: Bloomberg, *as on 13 November 2023
reason for suboptimal results in general while huge gross margin erosion of 830 Rating and Target prices
bps YoY has been additional factor in the case of SKF India. Even some
Company Name Rating Price* (Rs) TP (Rs)
improvement in margins (exception SKF India) and a huge YoY growth in other
SKF India Ltd Reduce 4,552 5,095
income (exception – Timken India) could not offset adverse operating leverage Timken India Ltd Sell 2,940 2,297
caused by low revenue impacting PAT. We have witnessed continuation of few Schaeffler India Ltd Sell 2,734 1,927
sequential quarterly trends – sliding revenue growth rate, headwinds in exports, Source: Centrum Broking, *as on 13 November 2023
diminishing margin volatility post achieving peak in FY22/FY23 (exception SKF
India in Q2FY24) and growing other income.
SKF India (best performer of Q1FY24) has been the worst performer for Q2FY24
SKF India clocked a YoY Rev/EBITDA/PAT growth of 4.4%/-43%/-42% while Schaeffer
India outperformed both the peers with a YoY Rev/EBITDA/PAT growth of 5.2%/7.2%/9%.
An 830 bps YoY contraction in gross margin impacted the performance of SKF India.
However, there has been a volatility in the quarterly performances of individual
companies. We have seen SKF India has been the best performer amongst peers in the
Q1FY24.
Slide in YoY revenue growth since past few quarters continued in Q2FY24 as well
A YoY revenue growth rates for all 3 companies continue to shrink since past five
sequential quarters and now reached to lower single digit/absolute decline. Exports
focused Timken India and Schaeffler India suffered yet another quarter of YoY decline in
exports (SKF India data not available). Read through for listed entities from the latest
quarter communication from their respective parent companies suggests likely
continuation of headwinds for exports business in coming few quarters.
Margins recovering (exception-SKF India); significance of other income growing
Gross and EBITDA margins are recovering and getting stabilized; however are lower than
peak achieved in FY22/FY23. Schaeffler India shows the highest stability in quarterly
margins while SKF India shown highest volatility. Other income is growing by more than
50% YoY since past 3 quarters (exception – Timken India) and has contributed in a
significantly to the PAT.
Other income saved the day for Schaeffler India but not for SKF India
A 5% YoY revenue growth and frugal 34 bps YoY expansion EBITDA margin allowed
Schaeffler India to clock 9% YoY jump in PAT mainly on account of 33% YoY growth in
other income. On the other hand, inspite of a 4% YoY revenue growth and whopping 99%
growth in other income, SKF India suffered a huge 42% YoY decline in PAT due to 830 bps
YoY erosion in gross margin.
Maintain lower growth till FY25E based on continued suboptimal performance
On aggregate level FY21/CY20-FY23/CY22 Rev/EBITDA/PAT CAGR have been
34%/7%/57%. We estimate 7%/5%/4% for FY23/CY22-FY25E/CY24E. We estimate, FY26E
Auto Ancillary

likely to be a turnaround year with capex of all three companies would start generating
meaningful revenues and export market would revive. The revenue would likely to clock
double digit YoY growth for all companies in FY26E.

Sameer Panke
Research Analyst, Auto Ancillary
+91 22 4215 9937
sameer.panke@centrum.co.in

Please see Appendix for analyst certifications and all other important disclosures.
Auto Ancillary 15 November 2023

Exhibit 1: Q2FY24 Results - Key financial parameters

Company Revenue (Rs mn) Gross Margin (%) EBITDA (Rs mn) EBITDA Margin (%) PAT (Rs mn) EPS (Rs)
Q2FY24 YoY % QoQ % Q2FY24 YoY bps QoQ bps Q2FY24 YoY % QoQ % Q2FY24 YoY bps QoQ bps Q2FY24 YoY % QoQ % Q2FY24
SKF India 11,252 4.4 -2.1 33.9 -830 -584 1,215 -43.4 -40.1 10.8 -910 -685 902 -42.1 -41.6 18.2
Timken India 6,820 -2.0 -5.0 41.6 177 36 1,355 2.6 -0.2 19.9 88 95 930 -4.7 3.2 12.4
Schaeffler India 18,483 5.2 1.0 37.2 24 -138 3,420 7.2 0.0 18.5 34 -20 2,350 9.1 -1.0 15.0
TOTAL 36,555 3.3 -1.1 5,990 -10.0 -12.0 4,182 -10.8 -13.2
Source: Company Data, Centrum Broking

Exhibit 2: Valuation Summary

CMP TP EPS PE (x) ROE (%) ROCE (%)
Company Rating
FY23/ FY24E/ FY25E/ FY26E/ FY23/ FY24E/ FY25E/ FY26E/ FY23/ FY24E/ FY25E/C FY26E/ FY23/ FY24E/ FY25E/ FY26E/
(Rs) (Rs)
CY22 CY23E CY24E CY25E CY22 CY23E CY24E CY25E CY22 CY23E Y24E CY25E CY22 CY23E CY24E CY25E
SKF India 4,552 5,095 REDUCE 106.1 104.2 122.2 132.6 42.9 43.7 37.2 34.3 24.8 20.2 21.0 20.1 26.1 22.0 22.9 21.7
Timken India 2,940 2,297 SELL 51.9 49.8 51.3 58.1 56.6 59.1 57.3 50.6 21.2 16.9 14.9 14.6 21.1 17.1 15.2 15.0
Schaeffler India* 2,734 1,927 SELL 56.3 59.4 61.6 66.8 48.6 46.1 44.4 40.9 21.8 20.3 18.8 18.1 23.0 20.1 19.3 19.5
Source: Company Data, Centrum Broking, *=CY

Exhibit 3: Deviation from estimates on aggregate basis

Q2FY24 Results (Rs mn) Actual Centrum Variance (%) Consensus Variance (%)
Particulars
Revenue 36,555 36,175 1.1 38,820 -5.8
EBITDA 5,990 6,457 -7.2 7,250 -17.4
EBITDA Margin (%) 16.4 17.8 (146 bps) 18.7 (229 bps)
PAT 4,183 4,344 -3.7 5,400 -22.5
Source: Company Data, Centrum Broking

Exhibit 4: Deviation from estimates

Q2FY24 Results
SKF INDIA Timken India Schaeffler India
(Rs mn)
Variance Variance Variance Variance Variance
Particulars Actual Centrum Consensus Actual Centrum Consensus Variance (%) Actual Centrum Consensus
(%) (%) (%) (%) (%)
Revenue 11,252 11,645 -3.4 12,060 -6.7 6,820 7,032 -3.0 7,440 -8.3 18,483 17,498 5.6 19,320 -4.3
EBITDA 1,215 2,105 -42.3 2,170 -44.0 1,355 1,251 8.3 1,450 -6.6 3,420 3,101 10.3 3,630 -5.8
EBITDA Margin (%) 10.8 18.1 (728 bps) 18.0 (719 bps) 19.9 17.8 208 bps 19.5 38 bps 18.5 17.7 78 bps 18.8 (28 bps)
PAT 902 1,488 -39.4 1,630 -44.7 930 830 12.0 1,320 -29.5 2,350 2,026 16.0 2,450 -4.1
Source: Company Data, Centrum Broking

Exhibit 5: Estimation Revision

Particulars (Rs mn) FY24E FY24E % chng FY25E FY25E % chng FY26E FY26E % chng
SKF India New Old New Old New Old
Revenue 46,431 47,630 -2.5 50,695 51,933 -2.4 56,535 57,648 -1.9
Gross Margin (%) 37.9 39.1 (120 bps) 39.1 39.1 0 bps 39.0 39.0 0 bps
EBITDA 7,063 7,995 -11.7 8,281 8,648 -4.2 9,104 9,447 -3.6
EBITDA Margin (%) 15.2 16.8 (157 bps) 16.3 16.7 (40 bps) 16.1 16.4 (30 bps)
PAT 5,150 5,701 -9.7 6,042 6,222 -2.9 6,554 6,731 -2.6
EPS (Rs) 104.2 115.3 -9.7 122.2 125.9 -2.9 132.6 136.1 -2.6

Particulars (Rs mn) FY24E FY24E % chng FY25E FY25E % chng FY26E FY26E % chng
Timken India New Old New Old New Old
Revenue 28,912 30,293 -4.6 30,633 33,049 -7.3 35,180 39,051 -9.9
Gross Margin (%) 41.3 40.3 100 bps 41.8 40.3 150 bps 42.0 40.1 190 bps
EBITDA 5,576 5,740 -2.9 5,938 6,205 -4.3 6,931 7,385 -6.1
EBITDA Margin (%) 19.3 18.9 34 bps 19.4 18.8 61 bps 19.7 18.9 79 bps
PAT 3,744 3,692 1.4 3,860 3,617 6.7 4,367 4,343 0.6
EPS (Rs) 49.8 49.1 1.4 51.3 48.1 6.7 58.1 57.7 0.6

Particulars (Rs mn) CY23E CY23E % chng CY24E CY24E % chng CY25E CY25E % chng
Schaeffler India New Old New Old New Old
Revenue 73,193 70,516 3.8 78,677 74,056 6.2 87,829 81,824 7.3
Gross Margin (%) 38.2 38.2 0 bps 38.2 38.0 20 bps 38.0 37.8 20 bps
EBITDA 13,544 12,952 4.6 14,436 13,363 8.0 16,113 14,780 9.0
EBITDA Margin (%) 18.5 18.4 10 bps 18.3 18.0 30 bps 18.3 18.1 20 bps
PAT 9,276 8,552 8.5 9,633 8,375 15.0 10,448 9,146 14.2
EPS (Rs) 59.4 54.7 8.5 61.6 53.6 15.0 66.8 58.5 14.2
Source: Centrum Broking

Centrum Institutional Research 2

Auto Ancillary 15 November 2023

Exhibit 6: Change in Revenue Assumptions

SKF India OLD NEW
YoY growth (%) FY24E FY25E FY26E FY24E FY25E FY26E
Exports 5 -2 5 -2 5 5
Total Automotive 9 8 8 8 9 10
Total Industrial 12 12 13 11 13 14
Sale from Services 30 15 25 30 30 30
Other Operating Income 15 10 15 15 15 15

Timken India OLD NEW

YoY growth (%) FY24E FY25E FY26E FY24E FY25E FY26E
Rail 19 25 30 18 20 25
Mobile - CV LCV Off Highway 3 5 10 -4 -1 7
Distribution - Auto and Industrial Aftermarkets 6 7 8 -6 5 7
Process 5 8 17 1 6 15
Intercompany /Exports -15 0 22 -17 -2 15

Schaeffler India OLD NEW

YoY growth (%) CY23E CY24E CY25E CY23E CY24E CY25E
Total Automotive ( Technologies+Afetrmarkets) 12 10 10 13 12 12
Automotive Technologies 11 8 8 13 10 10
Automotive Aftermarket 15 20 20 17 20 20
Total Industrial -6 -1 7 5 9 9
Total exports and others -5 0 18 -10 -12 18
Source: Centrum Broking

Exhibit 7: Centrum vs Consensus

Particulars (Rs mn) SKF India
Centrum Consensus Variance %
FY24E FY25E FY26E FY24E FY25E FY26E FY24E FY25E FY26E
Revenue 46,431 50,695 56,535 47,588 54,002 60,838 -2.4 -6.1 -7.1
Gross Margin (%) 37.9 39.1 39.0 38.9 39.7 39.9 (101 bps) (65 bps) (91 bps)
EBITDA 7,063 8,281 9,104 7,767 9,353 10,683 -9.1 -11.5 -14.8
EBITDA Margin (%) 15.2 16.3 16.1 16.3 17.3 17.6 (111 bps) (98 bps) (145 bps)
PAT 5,150 6,042 6,554 5,765 6,945 7,936 -10.7 -13.0 -17.4
EPS (Rs) 104.2 122.2 132.6 118.8 140.5 160.5

Particulars (Rs mn) Timken India

Centrum Consensus Variance %
FY24E FY25E FY26E FY24E FY25E FY26E FY24E FY25E FY26E
Revenue 28,912 30,633 35,180 31,387 36,461 39,847 -7.9 -16.0 -11.7
Gross Margin (%) 41.3 41.8 42.0 42.4 42.8 43.0 (113 bps) (97 bps) (99 bps)
EBITDA 5,576 5,938 6,931 6,416 7,770 8,696 -13.1 -23.6 -20.3
EBITDA Margin (%) 19.3 19.4 19.7 20.4 21.3 21.8 (113 bps) (192 bps) (99 bps)
PAT 3,744 3,860 4,367 4,440 5,364 5,923 -15.7 -28.0 -26.3
EPS (Rs) 49.8 51.3 58.1 56.0 70.2 78.8

Particulars (Rs mn) Schaeffler India

Centrum Consensus Variance %
CY23E CY24E CY25E CY23E CY24E CY25E CY23E CY24E CY25E
Revenue 73,193 78,677 87,829 74,460 84,198 97,517 -1.7 -6.6 -9.9
Gross Margin (%) 38.2 38.2 38.0 38.6 38.5 38.6 (48 bps) (32 bps) (26 bps)
EBITDA 13,544 14,436 16,113 13,987 16,103 18,851 -3.2 -10.4 -14.5
EBITDA Margin (%) 18.5 18.3 18.3 18.8 19.1 19.3 (28 bps) (78 bps) (98 bps)
PAT 9,276 9,633 10,448 9,504 10,818 12,624 -2.4 -11.0 -17.2
EPS (Rs) 59.4 61.6 66.8 61.6 69.8 80.8
Source: Centrum Broking, Bloomberg

Centrum Institutional Research 3

Auto Ancillary 15 November 2023

Exhibit 8: Revenue growth rate % (YoY) trend

Company Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24
SKF India 37.4 18.1 22.6 52.1 11.6 11.4 5.4 9.0 4.4
Timken India 42.4 33.2 40.4 49.5 24.6 19.5 20.2 2.6 -1.9
Schaeffler India * 32.7 19.6 19.0 41.8 18.1 17.8 8.0 4.6 5.2
Revenue growth rate decelerated (% YoY)

52.1
60.0

49.5
42.4

41.8
50.0

40.4
37.4

33.2

32.7
40.0

24.6
22.6
30.0

20.2

19.6
19.5

19.0
18.1

18.1
17.8
11.6
11.4
20.0

9.0

8.0
5.4

5.2
4.6
4.4
10.0

2.6
0.0
SKF india Timken India Schaffler India *

-1.9
-10.0
Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24
Source: Company Data, Centrum Broking, *=CY

Exhibit 9: Exports growth rate % (YoY) trend

Company Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24
SKF India 96.3 116.5 114.5 52.1 -10.7 -29.1 -39.8 9.0 NA
Timken India 85.7 66.4 75.5 74.4 41.3 -20.3 -23.8 -38.4 -28.7
Schaeffler India * 56.9 60.0 61.5 61.9 61.0 55.3 10.4 -3.5 -21.1
YoY exports growth rate (%) has been a pain pojnt for Timken & Schaffler
116.5
114.5

150.0
96.3

85.7

75.5
74.4

100.0
66.4

61.9
61.5

61.0
60.0
56.9

55.3
52.1

41.3

50.0

10.4
9.0

0.0

-3.5
-10.7

-20.3

-21.1
-23.8

-28.7
-29.1

-50.0
-38.4
-39.8

SKF india Timken India Schaffler India *

Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24
Source: Company Data, Centrum Broking, *=CY

Exhibit 10: Gross margin (%) trend

Company Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24
SKF India 38.5 35.6 37.5 39.2 42.3 41.5 38.7 39.8 34.0
Timken India 44.3 46.1 47.7 45.8 39.8 39.5 38.5 41.2 41.6
Schaeffler India * 37.5 38.9 39.2 37.1 37.0 39.0 38.8 38.6 37.2
Gross margin (%) volatility is highest in SKF followed by Timken
60.0
47.7
46.1

45.8
44.3
42.3

41.6
41.5

41.2

50.0
39.8

39.8
39.5

39.2
39.2

39.0
38.9

38.8
38.7

38.6
38.5

38.5
37.5

37.5

37.2
37.1
37.0
35.6

34.0

40.0

30.0

20.0

10.0

0.0
SKF india Timken India Schaffler India *
Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24

Source: Company Data, Centrum Broking, *=CY

Centrum Institutional Research 4

Auto Ancillary 15 November 2023

Exhibit 11: Other income (Rs mn) trend

Company Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24
SKF India 93 162 21 89 102 130 198 225 203
Timken India 38 28 49 106 215 144 67 93 101
Schaeffler India * 158 218 201 162 232 183 327 308 309

Quarterly Other Income run rate has grown in the last 3 quarters (Rs mn)

327

309
308
350
300

232
225

218
215
203

201
198
250

183
162

162
158
200

144
130

106
102

101
150

93
93

89

67
100

49
38
28
21
50
0
SKF india Timken India Schaffler India *
Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24

Source: Company Data, Centrum Broking, *=CY

Exhibit 12: Other income YoY growth rate (%) trend

Company Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24
SKF India 9.8 -19.6 823.8 153.0 99.4
Timken India 466.7 413.2 36.9 -11.7 -53.2
Schaeffler India * 47.0 -16.2 63.0 90.1 33.5
Other income YoY growth rates (%) are declining since past 3 quarters
200.0

150.0 153.0

100.0 99.4
90.1
50.0
33.5
0.0
-11.7
Q1FY24 Q2FY24
-50.0 -53.2

-100.0
SKF india Timken India Schaffler India *
Source: Company Data, Centrum Broking, *=CY

Exhibit 13: EBITDA margin (%) trend

Company Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24
SKF India 16.5 12.7 15.3 17.4 19.9 17.1 15.3 17.6 10.8
Timken India 22.2 22.4 27.0 24.5 19.0 17.0 19.1 18.9 19.9
Schaeffler India * 17.8 18.9 19.7 18.4 18.2 19.2 18.6 18.7 18.5
Timken & SKF Quarterly EBITDA margins (%) are more volatile than Schaeffler
27.0

30.0
24.5
22.4
22.2

25.0
19.9

19.9

19.7

19.2
19.1
19.0

18.9

18.9

18.7
18.6

18.5
18.4
18.2
17.8
17.6
17.4

17.1

17.0
16.5

15.3

15.3

20.0
12.7

10.8

15.0

10.0

5.0

0.0
SKF india Timken India Schaffler India *
Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24
Source: Company Data, Centrum Broking, *=CY

Centrum Institutional Research 5

Auto Ancillary 15 November 2023

Exhibit 14: PAT growth rate % (YoY) trend

Company Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24
SKF India 80.9 -33.9 4.0 63.3 32.6 40.6 11.0 19.6 -42.1
Timken India 58.6 87.6 128.9 108.2 23.2 1.1 -13.8 -23.6 -4.7
Schaeffler India * 50.5 34.6 48.4 76.2 26.1 21.2 5.9 5.1 9.1
Only Schaeffler has shown Quarterly positive YoY growth rate trend in past 9 quarters

128.9
108.2
150.0

80.9

76.2
87.6

63.3
100.0

58.6

50.5

48.4
40.6
32.6

26.1
23.2

21.2
19.6
34.6

11.0
50.0

5.9
5.1
4.0

1.1
9.1
0.0
SKF india Timken India -4.7 Schaffler India *

-13.8
-23.6
-50.0 -33.9 -42.1
-100.0
Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24
Source: Company Data, Centrum Broking, *=CY

Exhibit 15: Aggregate annual performance trend

Particulars FY20/ FY21/ FY22/C FY23/ FY24E/ FY25E/ FY26E/ 2 Yr CAGR (%) 2 Yr CAGR (%)
(Rs mn) CY19 CY20 Y21 CY22 CY23E CY24E CY25E FY21/CY20 - FY23/CY22 FY23/CY22 - FY25E/CY24E
Revenue 88,191 78,431 114,296 139,790 148,536 160,006 179,544 34% 7%
EBITDA 13,456 12,080 20,377 26,042 26,183 28,655 32,148 47% 5%
EBITDA % 15.3 15.4 17.8 18.6 17.6 17.9 17.9
PAT 9,027 7,319 13,514 17,947 18,171 19,535 21,369 57% 4%
Source: Company Data, Centrum Broking, *=CY

Centrum Institutional Research 6

Auto Ancillary 15 November 2023

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other form of assurance on these projections or forecasts. You should not regard the inclusion of the projections and forecasts described herein as a representation
or warranty by or on behalf of the Company, Centrum, the authors of this report or any other person that these projections or forecasts or their underlying assumptions
will be achieved. For these reasons, you should only consider the projections and forecasts described in this report after carefully evaluating all of the information in
this report, including the assumptions underlying such projections and forecasts.
The price and value of the investments referred to in this document/material and the income from them may go down as well as up, and investors may realize losses
on any investments. Past performance is not a guide for future performance. Future returns are not guaranteed and a loss of original capital may occur. Actual results
may differ materially from those set forth in projections. Forward-looking statements are not predictions and may be subject to change without notice. Centrum does
not provide tax advice to its clients, and all investors are strongly advised to consult regarding any potential investment. Centrum and its affiliates accept no liabilities
for any loss or damage of any kind arising out of the use of this report. Foreign currencies denominated securities are subject to fluctuations in exchange rates that
could have an adverse effect on the value or price of or income derived from the investment. In addition, investors in securities such as ADRs, the value of which are
influenced by foreign currencies effectively assume currency risk. Certain transactions including those involving futures, options, and other derivatives as well as non-
investment-grade securities give rise to substantial risk and are not suitable for all investors. Please ensure that you have read and understood the current risk
disclosure documents before entering into any derivative transactions.
This report/document has been prepared by Centrum, based upon information available to the public and sources, believed to be reliable. No representation or
warranty, express or implied is made that it is accurate or complete. Centrum has reviewed the report and, in so far as it includes current or historical information, it
is believed to be reliable, although its accuracy and completeness cannot be guaranteed. The opinions expressed in this document/material are subject to change
without notice and have no obligation to tell you when opinions or information in this report change.
This report or recommendations or information contained herein do/does not constitute or purport to constitute investment advice in publicly accessible media and
should not be reproduced, transmitted or published by the recipient. The report is for the use and consumption of the recipient only. This publication may not be
distributed to the public used by the public media without the express written consent of Centrum. This report or any portion hereof may not be printed, sold or
distributed without the written consent of Centrum.
The distribution of this document in other jurisdictions may be restricted by law, and persons into whose possession this document comes should inform themselves
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indirect, incidental, special or consequential including lost revenue or lost profits that may arise from or in connection with the use of the information.
This document does not constitute an offer or invitation to subscribe for or purchase or deal in any securities and neither this document nor anything contained herein
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may be restricted by law and persons into whose possession this report comes should inform themselves about, and observe any such restrictions. By accepting this
report, you agree to be bound by the fore going limitations. No representation is made that this report is accurate or complete.
The opinions and projections expressed herein are entirely those of the author and are given as part of the normal research activity of Centrum Broking and are given
as of this date and are subject to change without notice. Any opinion estimate or projection herein constitutes a view as of the date of this report and there can be no
assurance that future results or events will be consistent with any such opinions, estimate or projection.
This document has not been prepared by or in conjunction with or on behalf of or at the instigation of, or by arrangement with the company or any of its directors or
any other person. Information in this document must not be relied upon as having been authorized or approved by the company or its directors or any other person.
Any opinions and projections contained herein are entirely those of the authors. None of the company or its directors or any other person accepts any liability
whatsoever for any loss arising from any use of this document or its contents or otherwise arising in connection therewith.
Centrum and its affiliates have not managed or co-managed a public offering for the subject company in the preceding twelve months. Centrum and affiliates have
not received compensation from the companies mentioned in the report during the period preceding twelve months from the date of this report for service in respect
of public offerings, corporate finance, debt restructuring, investment banking or other advisory services in a merger/acquisition or some other sort of specific
transaction.

Centrum Institutional Research 7

 Auto Ancillary 15 November 2023
As per the declarations given by them, Mr. Sameer Panke, research analyst and and/or any of his family members do not serve as an officer, director or any way
connected to the company/companies mentioned in this report. Further, as declared by them, they are not received any compensation from the above companies in
the preceding twelve months. They do not hold any shares by them or through their relatives or in case if holds the shares then will not to do any transactions in the
said scrip for 30 days from the date of release such report. Our entire research professionals are our employees and are paid a salary. They do not have any other
material conflict of interest of the research analyst or member of which the research analyst knows of has reason to know at the time of publication of the research
report or at the time of the public appearance.
While we would endeavour to update the information herein on a reasonable basis, Centrum, its associated companies, their directors and employees are under no
obligation to update or keep the information current. Also, there may be regulatory, compliance or other reasons that may prevent Centrum from doing so.
Non-rated securities indicate that rating on a particular security has been suspended temporarily and such suspension is in compliance with applicable regulations
and/or Centrum policies, in circumstances where Centrum is acting in an advisory capacity to this company, or any certain other circumstances.
This report is not directed to, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or
other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would subject Centrum Broking Limited or
its group companies to any registration or licensing requirement within such jurisdiction. Specifically, this document does not constitute an offer to or solicitation to
any U.S. person for the purchase or sale of any financial instrument or as an official confirmation of any transaction to any U.S. person unless otherwise stated, this
message should not be construed as official confirmation of any transaction. No part of this document may be distributed in Canada or used by private customers in
United Kingdom. The information contained herein is not intended for publication or distribution or circulation in any manner whatsoever and any unauthorized
reading, dissemination, distribution or copying of this communication is prohibited unless otherwise expressly authorized. Please ensure that you have read “Risk
Disclosure Document for Capital Market and Derivatives Segments” as prescribed by Securities and Exchange Board of India before investing in Indian Securities Market.

Ratings definitions
Our ratings denote the following 12-month forecast returns:
Buy – The stock is expected to return above 15%.
Add – The stock is expected to return 5-15%.
Reduce – The stock is expected to deliver -5-+5% returns.
Sell – The stock is expected to deliver <-5% returns.

Skf India Ltd Timken India Ltd Schaeffler India Ltd

6500 4500 4500

5000 3500 3500

3500 2500 2500

2000 1500 1500

500 500 500

Nov-20 May-21 Nov-21 May-22 Nov-22 May-23 Nov-23 Nov-20 May-21 Nov-21 May-22 Nov-22 May-23 Nov-23 Nov-20 May-21 Nov-21 May-22 Nov-22 May-23 Nov-23
SKF India Ltd Timken India Ltd Schaeffler India Ltd
Source: Bloomberg

Centrum Institutional Research 8

Auto Ancillary 15 November 2023

Disclosure of Interest Statement

1 Business activities of Centrum Broking Centrum Broking Limited (hereinafter referred to as “CBL”) is a registered member of NSE (Cash, F&O and Currency Derivatives
Limited (CBL) Segments), MCX-SX (Currency Derivatives Segment) and BSE (Cash segment), Depository Participant of CDSL and a SEBI registered
Portfolio Manager.
2 Details of Disciplinary History of CBL CBL has not been debarred/ suspended by SEBI or any other regulatory authority from accessing /dealing in securities market.

3 Registration status of CBL: CBL is registered with SEBI as a Research Analyst (SEBI Registration No. INH000001469)
Skf India Ltd Timken India Ltd Schaeffler India Ltd

Whether Research analyst’s or relatives’ have any financial interest in the subject company and nature of such financial
4 No No No
interest
Whether Research analyst or relatives have actual / beneficial ownership of 1% or more in securities of the subject
5 No No No
company at the end of the month immediately preceding the date of publication of the document.

6 Whether the research analyst or his relatives has any other material conflict of interest No No No

Whether research analyst has received any compensation from the subject company in the past 12 months and nature
7 No No No
of products / services for which such compensation is received
Whether the Research Analyst has received any compensation or any other benefits from the subject company or third
8 No No No
party in connection with the research report

9 Whether Research Analysts has served as an officer, directoror employee of the subject company No No No

10 Whether the Research Analyst has been engaged in market making activity of the subject company. No No No

Whether it or its associates have managed or co-managed public offering of securities for the subject company in the
11 No No No
past twelve months;
Whether it or its associates have received any compensation for investment banking or merchant banking or brokerage
12 No No No
services from the subject company in the past twelve months;
Whether it or its associates have received any compensation for products or services other than investment banking or
13 No No No
merchant banking or brokerage services from the subject company in the past twelve months;

Member (NSE and BSE). Member MSEI (Inactive)

Single SEBI Regn. No.: INZ000205331

Depository Participant (DP)

CDSL DP ID: 120 – 12200
Single SEBI Regn. No.: IN-DP-537-2020

PORTFOLIO MANAGER

SEBI REGN NO.: INP000004383

Research Analyst
SEBI Registration No. INH000001469

Mutual Fund Distributor

AMFI REGN No. ARN- 147569

Website: www.centrumbroking.com
Investor Grievance Email ID: investor.grievances@centrum.co.in

Compliance Officer Details:

Ajay S Bendkhale
(022) 4215 9000/9023; Email ID: compliance@centrum.co.in

Centrum Broking Ltd. (CIN :U67120MH1994PLC078125)

Registered and Corporate Office:
Level -9, Centrum House, C.S.T. Road,
Vidyanagari Marg, Kalina,
Santacruz (East) Mumbai – 400098
Tel.: - +91 22 4215 9000

Centrum Institutional Research 9