SKF India, manufacturer of bearings, seals and lubrication systems, has announced a 6 per cent rise in net profit at Rs 51.5 crore for the quarter ended June 30, 2011.
Net sales for the Swedish company's domestic subsidiary rose 18 per cent to Rs 595.7 crore. SKF, which supplies to various manufacturing sectors such as automobiles, operates on a January-December financial year.
“Our second quarter has shown a steady performance in a moderating Indian economy. Operating margin was impacted by high inflationary pressures, adverse currency movements and higher commodity prices,” said Mr Shishir Joshipura, Managing Director, SKF India.
Sustaining growth
“India's economy is facing some near term challenges even as the longer term outlook remains encouraging. The company is taking steps to sustain the growth momentum given its presence in diverse sectors of the economy and leadership position in the sectors in which it operates.”
SKF shares at the BSE fell 4.61 per cent to Rs 650 on Tuesday.
The company, which has operations in more than 130 countries and has 15,000 distributor locations worldwide, also has an associate company called SKF Technologies (India). It has manufacturing plants in Pune, Bangalore and Haridwar.