SKF Bearings has reported a 78 per cent decline in net profit, at Rs 1.7 crore during the first quarter ended March 31, 2002, compared with Rs 7.47 crore during the same quarter last fiscal. Net sales during the quarter improved by 12 per cent to Rs 94.2 crore, from Rs 84.1 crore in March 2001.
However, the company's profits before restructuring costs and tax, at Rs 3.26 crore, were higher than the Rs 2.43 crore during the same quarter in 2000-01. During 2000-01, SKF had benefited from non-recurring income to the tune of Rs 5.7 crore. This included Rs 3.1 crore due to the company's voluntary retirement scheme, in addition to a one-time profit of Rs 2.59 crore on sale of property and investments.
Following the company's financial restructuring, which included retirement of its high-cost debts, SKF's interest costs in the quarter went down to Rs 3.37 crore from Rs 4.66 crore during the same period last year.
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Torsten Nordgren, managing director of SKF said in a statement: "There has been a qualitative change in the environment and the downturn in a number of customer industries and segments is slowly bottoming out. With first quarter sales stronger than in the corresponding period last year, we expect higher sales and production levels in fiscal 2002."
"We shall be focussing on more value-added products and services in all segments during the year, besides an emphasis on aftermarket sales which provides better margins," Nordgren added.