#Schaeffler is leading the Auto Industries #SuperChartz

Key Levels:

Support: 3050

Resistance: 3233 3333 3433 3733

Description:

Overall Performance:

Sustained growth in Q3 and nine months of 2023 in both top-line and bottom-line.
Robust GDP growth in India, particularly in sectors such as steel, cement, and commercial vehicles.
Mixed performance in the automotive sector, with passenger vehicles and commercial vehicles showing growth while two-wheelers remain flat.

New Business Wins:

Significant new business wins in the automotive sector, especially in commercial and passenger vehicles.
Diversification into industrial divisions with wins in industrial automation, railway, and two-wheeler sectors.

Revenue and Business Mix:

Positive growth in domestic segments, contrasting with export business facing challenges due to weak demand in Europe and China.
Export decline attributed to external demand issues rather than internal inventory challenges.

Financial Performance:

Strong earnings quality with sustained EBIT margin and profit after tax margin.
Emphasis on working capital management and cash flow generation.
Other income growth driven by interest income from old refunds and improved yields on cash.

Growth Outlook and Operations:

Targeting minimum double-digit growth with capex supporting growth realization.
Seasonal dip in Q3 automotive aftermarket revenues, with expectations of a bounce-back in Q4.
Continued focus on organic growth and strategic expansion in the Indian market.
Manufacturing plants operating at over 80% utilization, with new plant construction underway but no relocation plans.