NRB Bearings (NRBBEARING) Q4 02/03 earnings summary

Executive summary

• FY03 net sales rose 13.3% to Rs.14,547 lacs; profit after tax increased 42% to Rs.1,301.06 lacs, supported by higher volumes, efficiency gains and cost controls.

• Domestic organized bearings market share reached 11.5%; FY04 target was above 12%.

Financial highlights

• Profit before tax was Rs.2,084.99 lacs versus Rs.1,445.85 lacs in FY02; profit after tax was Rs.1,301.06 lacs versus Rs.916.65 lacs.

• Net sales, excluding excise duty, increased 13.3% to Rs.14,547 lacs from Rs.12,840 lacs.

• Depreciation rose to Rs.1,037.22 lacs from Rs.949.22 lacs; current and deferred tax provision totaled Rs.783.93 lacs versus Rs.529.20 lacs.

• Proposed dividend was Rs.6 per share, or 60%, versus Rs.5 per share, or 50%, in FY02.

Outlook and guidance

• FY04 domestic organized-market share target was above 12%, versus 11.5% in FY03.

• R&D spending plans earmarked up to 2% of net sales; priorities included bearing technology, testing facilities and engineering data links across plants.

• Higher material input prices, particularly steel, remained a pressure in the current year; cost-cutting initiatives had offset the prior-year impact.