SKF India rolls smooth

SKF India is right there among the top five gainers on the BSE today despite posting a poor set of earnings for Q4FY20.

The stock opened over 5% higher at Rs.1415 and rose 10% to hit an intraday high at Rs.1479.35; the stock has gained today after being in the red for this entire week. It has outperformed the sector by almost 5.5%.

The stock soared after the company declared a generous Dividend of Rs.130/share, giving a dividend yield of almost 9%, which in today’s time is very good.

On the earnings front, on a 18.5% (YoY) decline in net sales at Rs.610 crore, it posted a net profit of Rs.75 crore.

The profit fall would have been sharper but for the 59% rise in other income at Rs.46 crore of which Rs.35 crore was through sale of land. A 63% fall in tax expense also helped.

The company ended FY20 with a 6% drop in net sales at Rs.2842 crore and net profit of Rs.289 crore, a 14% fall.