NRB BEARINGS 2017-18 Annual Report Analysis

Sat, 31 Mar

NRB BEARINGS has announced its results for the year ended March 2018. Let us have a look at the detailed performance review of the company during FY17-18.

NRB BEARINGS Income Statement Analysis

• Operating income during the year rose 27.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 44.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 20.2% in FY18 as against 17.9% in FY17.
• Depreciation charges decreased by 4.1% and finance costs decreased by 14.2% YoY, respectively.
• Other income grew by 52.3% YoY.
• Net profit for the year grew by 75.1% YoY.
• Net profit margins during the year grew from 8.1% in FY17 to 11.1% in FY18.

NRB BEARINGS Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	6,563	8,364	27.4%
Other income	Rs m	80	121	52.3%
Total Revenues	Rs m	6,642	8,485	27.7%
Gross profit	Rs m	1,172	1,692	44.4%
Depreciation	Rs m	323	310	-4.1%
Interest	Rs m	175	150	-14.2%
Profit before tax	Rs m	753	1,353	79.6%
Tax	Rs m	223	424	90.4%
Profit after tax	Rs m	531	929	75.1%
Gross profit margin	%	17.9	20.2
Effective tax rate	%	29.6	31.3
Net profit margin	%	8.1	11.1

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NRB BEARINGS Balance Sheet Analysis

• The company's current liabilities during FY18 stood at Rs 4 billion as compared to Rs 3 billion in FY17, thereby witnessing an increase of 19.5%.
• Long-term debt down at Rs 689 million as compared to Rs 1 billion during FY17, a fall of 35.9%.
• Current assets rose 21% and stood at Rs 5 billion, while fixed assets rose 2% and stood at Rs 5 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 10 billion as against Rs 9 billion during FY17, thereby witnessing a growth of 11%.

NRB BEARINGS Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	3,040	3,780	24.3
Current Liabilities	Rs m	3,022	3,611	19.5
Long-term Debt	Rs m	1,073	689	-35.9
Total Liabilities	Rs m	9,118	10,083	10.6
Current assets	Rs m	4,204	5,079	20.8
Fixed Assets	Rs m	4,914	5,004	1.8
Total Assets	Rs m	9,118	10,083	10.6

NRB BEARINGS Cash Flow Statement Analysis

• NRB BEARINGS's cash flow from operating activities (CFO) during FY18 stood at Rs 1 billion, an improvement of 56.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -465 million, an improvement of 82.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -960 million on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs -88 million from the Rs -96 million net cash flows seen during FY17.

NRB BEARINGS Cash Flow Statement 2017-18

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-17	Mar-18
Cash Flow from Operating Activities	Rs m	851	1,335	56.9%
Cash Flow from Investing Activities	Rs m	-254	-465	-
Cash Flow from Financing Activities	Rs m	-694	-960	-
Net Cash Flow	Rs m	-96	-88	-

Current Valuations for NRB BEARINGS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 9.6, an improvement from the EPS of Rs 5.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 153.1, stands at 18.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.9 times, while the price to sales ratio stands at 1.8 times.
• The company's price to cash flow (P/CF) ratio stood at 11.3 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*
Sales per share (Unadj.)	Rs	67.7	86.3
TTM Earnings per share	Rs	5.5	9.6
Diluted earnings per share	Rs	5.5	9.6
Price to Cash Flow	x	12.3	11.3
TTM P/E ratio	x	20.5	18.1
Price / Book Value ratio	x	3.9	3.7
Market Cap	Rs m	11,825	14,051
Dividends per share (Unadj.)	Rs	1.4	2.6

Ratio Analysis for NRB BEARINGS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.4x during FY18, from 1.4x during FY17. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio improved and stood at 10.0x during FY18, from 5.3x during FY17. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company improved and stood at 24.6% during FY18, from 17.5% during FY18. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 33.6% during FY18, from 22.6% during FY17. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company improved and stood at 10.7% during FY18, from 7.7% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*
Current ratio	x	1.4	1.4
Debtors’ Days	Days	1,077	1,019
Interest coverage	x	5.3	10.0
Debt to equity ratio	x	0.4	0.2
Return on assets	%	7.7	10.7
Return on equity	%	17.5	24.6
Return on capital employed	%	22.6	33.6

To see how NRB BEARINGS has performed over the last 5 years, please visit here.

NRB BEARINGS Share Price Performance

Over the last one year, NRB BEARINGS share price has moved up from Rs 108.0 to Rs 153.1, registering a gain of Rs 45.1 or around 41.8%.

Overall, the S&P BSE SENSEX is up 12.1% over the year.

(To know more, check out historical annual results for NRB BEARINGS and quarterly results for NRB BEARINGS)

Read: Latest Annual Report Analysis of NRB BEARINGS