SKF India's decline in Q4 sales was primarily on account of lower demand from its key target market i.e. auto and industrial, says Shishir Joshipura, managing director of SKF India Ltd. The management, he says, is focused on tightening its working capital requirements. In the past few quarters, SKF has been facing margin pressures due to slowing revenue growth and its inability to pass on higher costs. With facilities underutilized, margins will remain muted, primarily owing to lower fixed cost absorption, says Mr Joshipura.
