NRB Bearings (NRBBEARING) Q4 98/99 earnings summary

Executive summary

• FY99 net sales fell 3.5% to Rs.10,070 lacs; profit after tax declined to Rs.766.84 lacs from Rs.1,175.99 lacs.

• Slower OEM demand and auto-sector price reductions pressured margins; replacement-market growth partly offset the decline in OEM business.

• A 40% dividend was recommended, equal to Rs.387.69 lacs.

Financial highlights

• Net sales were Rs.10,070 lacs versus Rs.10,440 lacs in FY98, down 3.5% YoY.

• Profit before tax was Rs.966.84 lacs versus Rs.1,736.99 lacs; depreciation was Rs.716.93 lacs versus Rs.629.39 lacs.

• Profit after tax was Rs.766.84 lacs versus Rs.1,175.99 lacs; tax provision was Rs.200 lacs versus Rs.561 lacs.

• Operating cash flow reached Rs.1,709.81 lacs versus Rs.1,018.66 lacs; cash and cash equivalents ended the year at Rs.64.37 lacs versus Rs.82.96 lacs.

Outlook and guidance

• General Bearings Division expansion was partly implemented in H2; completion was expected during FY00.

• NRB-Torrington was expected to turn around in FY00, with domestic growth and prospective American and European export business expected to produce its first profit.

• Performance-improvement work with international consultants was intended to strengthen competitiveness and improve operating performance.