SKF Bearings India took a big stride up on Tuesday as the market reacted with glee to the company's net profit spurting over 127% for the year ended 31 December 2002.

The scrip of the bearings making MNC climbed 3.7% to Rs 45.30 on BSE in early trades. It had touched the day's high of Rs 46, earlier on. Volumes stood at 29,800 shares on BSE even as trading barely commenced.

There has been some amount of volatility on the counter - the scrip has staged a rally from a late October 2002 low and now trades close to its 52-week closing high of Rs 47.25 (on 30 December 2002). Market men, in any case, were expecting a strong performance for Q4 by SKF.

For Q4 ended 31 December 2002, SKF posted a massive rise in net profit to Rs 7.07 crore compared to a net profit of 0.42 crore for Q4 ended 31 December 2001. Total income has jumped 16% to Rs 116.46 crore (Rs 1.16 billion) from Rs 100.08 crore (Rs 1 billion).

For FY 2002 (year ended 31 December 2002), SKF has posted a 127% rise in net profit to Rs 20.42 crore from Rs 8.97 crore in FY 2001. Total income has surged 12.8% in FY 2002 to Rs 419.85 crore (Rs 4.19 billion) from Rs 372.10 crore (Rs 3.72 billion) in FY 2001.

The company's interest cost declined sharply in FY 2002 as a result of the capital restructuring undertaken by the company. Interest costs fell 46% in FY 2002 to Rs 10.97 crore from Rs 20.32 crore in FY 2001. Besides, an improvement in the two-wheelers market also helped the strong growth.

Cost-cutting and introduction of new products is the company's main focus. The company is consolidating its position in the OEM as well as replacement market. In the OEM markets, its clients include Telco, TVS Motor and Bajaj Auto. About 40% of the company's revenue comes from the after-market, while the rest from Original Equipment Manufacturers.

SKF is constantly innovating product packaging by using machine sealed three-dimension pouches.

SKF Bearings India is a 54% subsidiary of SKF, Sweden.