NRB Bearings (NRBBEARING) Q4 97/98 earnings summary

Executive summary

• FY98 sales fell 9% to Rs.10,440.80 lacs; profit after tax declined to Rs.1,175.99 lacs from Rs.1,894.80 lacs. Replacement-market demand partly offset weaker OEM sales.

• FY98 actual sales, PAT, EPS and dividend exceeded the February 1995 public-issue projections.

Financial highlights

• Net sales were Rs.10,440.80 lacs vs Rs.11,510.42 lacs in FY97; total income was Rs.10,784.93 lacs vs Rs.11,921.70 lacs.

• Profit before tax was Rs.1,745.99 lacs vs Rs.2,979.80 lacs; depreciation rose to Rs.629.39 lacs from Rs.490.54 lacs.

• PAT was Rs.1,175.99 lacs vs Rs.1,894.80 lacs; tax provision was Rs.570 lacs vs Rs.1,085 lacs.

• Dividend of 40% was recommended; proposed final dividend was Rs.387.69 lacs, with Rs.193.85 lacs paid as interim dividend.

Outlook and guidance

• Enhanced capacity in the general bearings division was deferred to H2 of the current year in response to the automotive slowdown.

• Cost-reduction measures were initiated to help maintain profit margins amid OEM price reductions and cost pressure.

• NRB Torrington expected materially higher capacity utilisation and a financial turnaround in the current year.