Business news, strategy, finance and business insights

I CONTINUE TO TELL people the Timken Company believes in Saraswati; Lakshmi is a by-product,” says Sanjay Koul, president and managing director of Timken India, a manufacturer of engineered bearings and power transmission products. The evocation of Hindu goddesses of knowledge and wealth underscores the belief in innovative technologies as a cornerstone of Timken’s business in India. “We have always embraced cutting-edge technologies, whether in materials science or advanced machining, application engineering and customers, which is especially important as the world changes. This change will only happen when tech companies have a head start,” he says.

The India arm of the North Canton, Ohio-based company reported revenue of ₹2,203 crore in FY22, its highest on record, as operations hit pre-FY20 levels. pandemic. The PAT of ₹327 crore was also the highest on record. “Covid-19 and supply chain disruptions are looming, but consumption in India has been decent since the early days of the pandemic. disruptions. On average, finished goods inventory growth was about 20% higher than normal. That pushed up our backlog,” he says.

But the pandemic has spared no one. Timken India had to shut down production for a few months in 2020 and one month in 2021. Even though it was able to turn a profit in the pandemic-stricken FY21, the operating profit margin fell. to 14%, compared to 19% in fiscal 2020, mainly due to higher input prices.

Koul calls the past two years “volatile” — from the excesses of the pandemic to the surge in raw material prices that was passed on to original equipment manufacturers (OEMs), which he says doesn’t happen. was never produced in Timken’s three decades of presence in India. “Steel prices have increased by 30 to 40% since the start of the pandemic. The transmission was done without recoil, which benefited the supply chain. But not all price increases could be passed on. There was a mutual sharing of the burden,” he says. In FY22, the company was able to maintain margins at 21-22% for most of the year despite fluctuations in raw material prices induced by the Russian-Ukrainian war, and ended the year with an operating profit margin of 20%.

Comments are closed.