NRB Bearings (NRBBEARING) Q4 01/02 earnings summary

Executive summary

• FY02 net sales rose 9.65% to Rs.12,831 lakh; PAT increased 10.3% to Rs.916.65 lakh despite higher depreciation and a Rs.324.20 lakh deferred-tax provision.

• Sales growth and improved results came as the organized domestic bearings industry contracted 1–2%; cost controls and lower net interest charges helped offset price-realization pressure.

Financial highlights

• Net sales, excluding excise duty, were Rs.12,831 lakh versus Rs.11,706 lakh in FY01; reported sales growth was 9.6%.

• Profit before tax was Rs.1,445.85 lakh versus Rs.1,260.63 lakh; PAT was Rs.916.65 lakh versus Rs.831.34 lakh.

• Net interest charges declined 15%; depreciation increased to Rs.949.22 lakh from Rs.886.67 lakh.

• Cash from operating activities was Rs.3,708.01 lakh; net cash increased Rs.15.30 lakh during FY02.

Outlook and guidance

• Domestic bearings industry was expected to grow 6% in FY03, with user industries projected to show varied growth rates.

• New automotive products were targeted to contribute 10–12% of FY03 sales; domestic organized-sector market share target was over 11%, versus 10.3% in FY02.

• Gradual economic recovery was expected, supported by infrastructure projects including the National Highway Development Project and Delhi and Chennai Metro projects.