Timken India is amongst the top 2 bearing players in the railways segments in India and is strong player in high end bearings for MHCVs (mid and heavy commercial vehicles). Its entry into wheel end bearings supply coupled with its acquisition of ABC bearings will benefit its MHCV related business.
Addressable market for Timken's domestic railway business (20% of revenues) – is expected to show a sharp increase - 2.5x (Dedicated Freight Corridor wagons, replacement of old freight wagons, high speed passenger trains, metro, locomotives).
Timken’s exports (currently 35% of revenues) is expected to grow well as it continues to enjoy cost leadership with Timken’s parent’s various factories around the world.
FY19 was a strong year for Timken India (proforma including ABC bearings in FY18) as it reported a revenue, EBITDA, and Profit after tax growth of 15%, 48% and 42% respectively.
Disclaimer: The above report is compiled from information available on public platforms. inChat team advises users to check with certified experts before taking any investment decisions.
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