SKF India surged 7.72% to Rs 1450 after the company's board recommended a special dividend of Rs 130 per share at the meeting held on 7 May 2020.
At current price, the stock offers a dividend yield of 8.97% on special dividend of Rs 130 per share.
SKF India announced its Q4 earnings after trading hours yesterday, 7 May 2020. The company's net profit fell 8.3% to Rs 75.34 crore on a 18.5% decline in net sales to Rs 610.21 crore in Q4 March 2020 over Q4 March 2019.
Other income of the company surged 59.3% to Rs 46.44 crore in Q4 FY20 from Rs 29.16 crore in Q4 FY19. It includes profit of Rs 34.9 crore earned from the sale of land for a consideration of Rs 35.46 crore.
While the company's total expenditures shrunk 14% to Rs 548.34 crore, its interest payments remained flat at Rs 1.82 crore in Q4 FY20 over Q4 FY19. The company's overall profitability was impacted by higher depreciation costs which rose 26.9% on a year-on-year (YoY) basis to Rs 14.66 crore in the quarter ended on 31 March 2020.
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Profit before tax (PBT) stood at Rs 91.83 crore in Q4 FY20, down by 27.6% from Rs 126.78 crore in Q4 FY19. During the quarter, total tax expense fell 63% on a YoY basis to Rs 16.49 crore.
The company's net profit fell 13.9% to Rs 288.99 crore on a 6.4% decline in net sales to Rs 2841.58 crore in the year ended March 2020 over the year ended March 2019. PBT stood at Rs 386.77 crore in FY20, down by 26.2% from Rs 524.19 crore in FY19.
SKF's management believes that it has taken it has taken into account all the possible impact of the known events arising from COVID-19 pandemic in the preparation of the financial results. However, the estimated impact of the global health pandemic might vary and the company will continue to monitor any material changes to future economic conditions.
SKF India manufactures a wide range of ball and roller bearings, such as deep groove, taper roller and other types. Bearings are used by a number of industries, including the automotive, electrical, power generation, cement, steel, petrochemical and textile industries.
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