Tag: Timken India

Timken cuts TIL ownership to 57% in strategic share sale

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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A subsidiary of The Timken Company (“Timken” or the “Company”) successfully concluded the sale of 7.6 million shares of Timken India Limited (TIL), a publicly listed company, as per a statement issed by the company on Tuesday, March 12. The strategic move has seen Timken’s ownership in TIL decrease from 67.8% to 57.7%, yielding gross sales proceeds totaling approximately $288 million.

Timken plans to channel the net proceeds, factoring in taxes and other direct costs, towards supporting its 2023 capital allocation priorities, with a specific focus on share repurchases. “The net impact from the transaction and related use of proceeds is expected to be accretive to the Company’s earnings per share,” it said.

” The Indian market remains strategically important to Timken, and the Company intends to maintain a controlling interest in TIL,” it added.

In a parallel development, TIL, under Timken’s umbrella, recently initiated the construction of a state-of-the-art $75 million manufacturing plant in Bharuch, India. The facility is set to produce spherical and cylindrical roller bearings for industrial applications, catering to both domestic and international demand.

Production at the new plant is slated to commence by early 2025.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Timken India shares drop 5% after temporary closure of Jamshedpur plant due to low demand

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Shares of Timken India Ltd. slumped over 5 percent on Monday after the company announced the closure of its Jamshedpur plant for a week due to low demand and better demand planning for production efficiency.

The plant will remain closed from August 25 to September 3, Timken India said in a filing to the stock exchanges.

This announcement from Timken comes just three months after the company mentioned in its March quarter earnings call on May 19 that both the company’s plants at Jamshedpur and Bharuch are running at full capacity.

“Currently, both our plants are running pretty much full and our rail is running full and the SRB, CRB plant, as we look at the demand and as we look at everything, would also be off to a very nice start,” the management had said during the earnings call.

Timken India, formerly known as Tata Timken, is engaged in the manufacturing and distribution of tapered roller bearings, components, and accessories for the automotive sector and the railway industry. Also, it offers maintenance contract services and refurbishment services.

Based on the June shareholding pattern, Timken Singapore Pte held 57.7 percent shares in the company.

In November 2022, Timken India announced that it would set up a new facility in Bharuch, Gujarat, with an investment of Rs 600 crore for the local production of certain types of bearing products. The new facility will start commercial production by 2025.

The company disclosed that it would manufacture spherical roller bearings (SRB), cylindrical roller bearings (CRB) and components at the facility.

Currently, the SRB and CRB products are not manufactured in India and are imported from Timken Group companies globally.

Shares of Timken India are currently trading 3.5 percent lower at Rs 3,284.05. The stock is up 2.6 percent on a year-to-date basis.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Timken India shares fall most in 28 months after more than 10% equity changes hands in a block deal

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Shares of Timken India fell as much as 11 percent on Tuesday after nearly 10 percent of the company’s equity changed hands in a large trade. 84.5 lakh shares of the company exchanged hands in the transaction, data from the exchanges show. The transaction is valued at Rs 2,629 crore.

Buyers and sellers in the transaction are unknown as of yet. Sources had told CNBC-TV18 on Monday that the company’s parent, Timken Singapore Pte, had decided to sell 63 lakh shares or 8.3 percent of the total equity of the company through a block deal. The floor price of the transaction was set at Rs 3,000 per share, which is a 14 percent discount on Monday’s closing price.

Based on the March 2023 shareholding pattern, Timken Singapore Pte. held 67.8 percent shares in the company. Among other major funds that have a stake in the company include PGIM India Trustees Pvt. Ltd., SBI Smallcap Fund and Nippon Life India Trustee Ltd.

Timken India (previously known as Tata Timken) is primarily into manufacturing and distribution of tapered roller bearings, components, and accessories for the automotive sector and the railway industry. It also provides maintenance contract services and refurbishment services.

Shares of Timken India fell as much as 11.1 percent to Rs 3,100.30 on Tuesday, marking the steepest fall in the stock in 28 months. The last time the stock fell to this extent was back in February 2021.

Today’s fall has also meant that the stock has given up all the gains it has made this year. Due to this transaction, trading volumes in the stock are 135.5 times higher than its three-month full-day average.

Shares have recovered from opening lows, currently trading 7.6 percent lower at Rs 3,223.

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Timken India gains after three days; Voltas rebounding: What kept dealers busy on Thursday?

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Shares of Timken India ended over 6 percent higher on Thursday, gaining after a three-day run of losses. The stock had also gained 20 percent in a single session two weeks earlier.

Sources within the dealing rooms told CNBC-TV18 that the stock gained on Thursday courtesy big buy flows coming from the FII desk.

The stock is now 7 percent away from its 52-week high.

Another Day Of Records

Benchmark indices ended off their intraday highs but hit new records during the weekly options expiry session. The S&P BSE Sensex hit a record high for the sixth straight session while the Nifty 50 hit new peaks for the fourth day in a row.

Gains on Thursday were led by technology names as the Nifty IT index mirrored the overnight performance from the Nasdaq to end 2.5 percent higher.

Auto stocks underperformed after sales numbers for the month of november. Eicher Motors and Bajaj Auto were among the top laggards.

Dealing rooms indicate flows were mixed on Thursday with small “market at close” basket buying seen at a leading FII desk. Broader markets outperformed on Thursday.

Financials too were mixed on Thursday with indications of profit booking seen in select PSU banks.

Besides Timken India, here are some other stocks that have been part of the dealing room chatter today:

Ajanta Pharma: The stock ended 1 percent higher on Thursday after a two-day drop. Shares have been consolidating off late. Dealing rooms are anticipating a large block deal in the stock soon.

Voltas: Shares gained nearly 3 percent on Thursday. The stock has now rebounded 5 percent from its 52-week low of Rs 803 it hit earlier this month. Dealers believe that selling pressure in the stock from a leading long-only foreign investor is likely to be over, causing the rebound.

Also Read: Here’s why 2022 has been a very different year for two of India’s biggest AC makers

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Timken India shares shine after Rs 600 crore investment plans in Gujarat

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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[wealthdesk shortname=”Timken” isinid=”INE325A01013″ bseid=”522113″ nseid=”TIMKEN” sector=”Bearings” exchange=”nse”]

Timken India shares gained as much as 11 percent on Thursday after the company announced the setting up of a new facility in Bharuch, Gujarat, at an investment of Rs 600 crore for the local production of certain types of bearing products.

The new facility, which will start commercial production by 2025, will manufacture spherical roller bearings (SRB) and cylindrical roller bearings (CRB) and components.

Currently, the SRB and CRB products are not manufactured in India and are imported from Timken Group companies globally, post which they are sold in India.

The company already has a manufacturing plant at Bharuch which primarily manufactures tapered roller bearings (TRB) and their components.

Timken India is setting up the facility to manufacture SRB and CRB products at the same premises. The new facility will be funded through internal accruals.

Timken will also target domestic as well as international markets including the United States and Europe for the SRB and CRB products

Along with Bharuch, the company has a manufacturing plant in Jamshedpur as well.

For the September quarter, Timken India reported a 22 percent growth in net profit and a 25 percent year-on-year jump in revenue.

Shares of Timken India are trading 10.7 percent higher at Rs 3,235.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Timken India shares drop after earnings weaken compared to June

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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[wealthdesk shortname=”Timken” isinid=”INE325A01013″ bseid=”522113″ nseid=”TIMKEN” sector=”Bearings” exchange=”nse”]

Timken India Ltd. shares dropped as much as 6.6 percent in early trade on Tuesday after the company announced September quarter results after market hours on Monday.

Revenue from operations for the company increased 24.6 percent from the same period last year to Rs 695.4 crore. However, when compared to the June quarter, the revenue is marginally lower from the figure of Rs 699 crore.

Net profit for the period also increased 23 percent to Rs 97.6 crore but was lower on a sequential basis by 17.3 percent.

On a year-on-year basis, the company’s operating profit increased by 6 percent while the EBITDA margin contracted by over 350 basis points to 18.8 percent from 22.2 percent during the year-ago period.

Timken India (previously known as Tata Timken) is primarily into manufacturing and distribution of tapered roller bearings, components, and accessories for the automotive sector and the railway industry. It also provides maintenance contract services and refurbishment services.

In a research report dated August 16, 2022, equity research firm ICICI Direct issued a ‘buy’ rating on the stock with a 12-month target price of Rs 3,560. The brokerage cited a strong balance sheet and growth prospects led by railways, wind, and exports behind its bullish stance.

Shares of Timken India are trading 4.3 percent lower at Rs 2,870, as of 10:20 AM. The stock has gained over 60 percent during the last 12 months, outperforming the benchmark Sensex, which has risen only 2 percent during the same period.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow