NRB Bearings (NRBBEARING) Q4 04/05 earnings summary

Executive summary

• FY05 delivered record standalone net sales of Rs.21,455.91 lacs and PAT of Rs.2,729.21 lacs; exports rose 57.6% to Rs.1,707 lacs.

• Consolidated PAT was Rs.2,739.79 lacs and consolidated EPS Rs.28.27; the subsidiary contributed Rs.18.93 lacs of profit after a prior-year loss.

Financial highlights

• Standalone net sales rose 22.7% YoY to Rs.21,455.91 lacs; PBT was Rs.4,291.02 lacs versus Rs.3,108.56 lacs, and PAT Rs.2,729.21 lacs versus Rs.2,035.21 lacs.

• Standalone operating profit before depreciation, interest, exceptional items and tax was Rs.5,394.11 lacs, versus Rs.4,128.37 lacs; depreciation was Rs.1,103.09 lacs.

• Consolidated net sales were Rs.22,156.14 lacs; PBT was Rs.4,301.60 lacs and PAT Rs.2,739.79 lacs, versus Rs.18,191.84 lacs, Rs.2,930.86 lacs and Rs.1,857.51 lacs, respectively, in FY04.

• Standalone domestic sales rose 20.4% to Rs.19,749 lacs; exports increased 57.6% to Rs.1,707 lacs.

• Recommended dividend was Rs.10 per share, including a Rs.1 special dividend for the 40th year; payout was 40.49%.

Outlook and guidance

• FY06 Indian GDP growth was forecast at 6.9%, with manufacturing at 7.8% and services at 8.9%; auto and capital-goods growth supported demand expectations.

• New production capacity was under implementation and new products under development for domestic and international markets; identified capacity enhancements were initiated to support export growth.

• R&D plans included earmarking up to 2% of net sales for ongoing development and testing capabilities.