NRB Bearings (NRBBEARING) Q4 03/04 earnings summary

Executive summary

• Record FY03/04 performance: net sales rose 20.2% YoY to Rs.17,491.40 lacs; PBT reached Rs.3,108.56 lacs and PAT Rs.2,035.21 lacs.

• Higher volumes, operating efficiencies, cost reduction, product quality and customer support supported results; demand was buoyant across automotive categories.

Financial highlights

• Net sales, excluding excise duty, increased to Rs.17,491.40 lacs from Rs.14,546.57 lacs; PBT rose to Rs.3,108.56 lacs from Rs.2,084.99 lacs.

• PAT increased to Rs.2,035.21 lacs from Rs.1,301.06 lacs; the year included Rs.197.90 lacs of voluntary retirement compensation expense.

• Consolidated sales were Rs.18,191.84 lacs and consolidated PAT Rs.1,857.51 lacs; consolidated EPS was Rs.19.16 versus Rs.12.49.

• Net cash from operations was Rs.2,222.24 lacs; net increase in cash and cash equivalents was Rs.131.14 lacs.

Outlook and guidance

• Growth prospects were linked to road and infrastructure investment, rising disposable income and lower funding costs; automotive industry potential was considered good.

• FY04/05 vehicle-production estimates projected growth of 20% for HCV/MCV, 18% for passenger cars and 11% for motorcycles.

• Capacity-enhancement measures were initiated as export opportunities expanded; sustaining growth will require additional capacity investment and stronger brand and value proposition.