NRB Bearings (NRBBEARING) Q4 99/00 earnings summary

Executive summary

• FY00 net sales rose 19.6% to Rs.12,048.53 lacs; profit after tax increased to Rs.1,216.97 lacs from Rs.766.84 lacs.

• Higher automotive OEM offtake and exports supported growth; higher material costs in H2 began pressuring profitability.

Financial highlights

• Sales net of excise duty were Rs.12,049 lacs versus Rs.10,070 lacs; exports increased 80% YoY.

• PBT was Rs.1,623.94 lacs versus Rs.966.84 lacs; PAT was Rs.1,216.97 lacs versus Rs.766.84 lacs, including Rs.73.03 lacs of prior-year tax adjustments.

• Interim dividend of Rs.4.50/share, or 45%, was paid; directors recommended it be treated as the final dividend for FY00.

Outlook and guidance

• Thane engineering and testing facilities are intended to accelerate product development, improve customer service and support advanced vehicle models and international-market supply.

• Domestic demand for the joint venture’s products was projected to grow further; export business to American and European markets was being finalized with Torrington USA’s assistance.

• Capacity additions and product-range expansion were expected to strengthen needle-bearing participation without a new capacity gestation period following the SNBL acquisition.