SKF Bearings displayed strength in a weak market on Wednesday on good buying support, following the impressive performance recorded by the company.

In afternoon trades, the scrip of the auto ancillary company rose 2.66% to Rs 46.25 on BSE. Volume were higher than usual, at over 1 lakh shares. Today's rise is in continuation of recent firmness in the scrip. Between 11 and 22 April 2003, the SKF Bearings scrip has risen 7.3% to Rs 45.05 from 42.

For the first quarter ended 31 March 2003, SKF Bearing registered a massive rise in net profit to Rs 4.99 crore from Rs 1.70 crore in the corresponding period of the previous year. Total income increased by 12.2% to Rs 109.25 crore (Rs 1.09 billion) from Rs 97.35 crore in MQ 2002.

Cost-cutting and introduction of new products has been the company's main focus in recent times. The company is confident that, with any relaxation in the recessionary conditions, it will be able to obtain the rewards of its various process and productivity improvements. SKF Bearings business module is mainly focused on the replacement market, with a strong client base. Its products are patronised by companies like Telco, TVS Motor and Bajaj Auto. About 40% of SKF Bearings' revenues comes from the replacement market, while the rest from OEMs.

SKF is constantly innovating product packaging by using machine sealed three-dimension pouches. SKF Bearings India is a 54% subsidiary of SKF, Sweden.

The scrip at the current price of Rs 46.25, trades at an annualised PE multiple of 10.5 based on an EPS of Rs 4.50.