Margin pressures may offset volumes gains for Schaeffler

Higher content per vehicle, steady aftermarket and exports are growth drivers

A recovery in the auto sector helped Schaeffler India post better-than-expected results in the December quarter. New BS-VI products in the passenger and light commercial vehicle segments and volume gains in the commercial vehicles segment led the 23 per cent year-on-year (YoY) growth in revenue. 

While auto accounted for half of its sales, strong replacement sales, sequential recovery in industrial products, and exports aided the December quarter show. The gains in the industrial segment could have been better but for curtailment of rolling stocks by Indian Railways. Analysts, however, believe increased allocation to the sector in the Budget could lead