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NRB BEARINGS 2017-18 Annual Report Analysis

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NRB BEARINGS 2017-18 Annual Report Analysis
Fri, 24 Aug

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 17.9% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 44.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 19.7% in FY18 as against 16.1% in FY17.
  • Depreciation charges and finance costs decreased by 4.2% YoY and 16.9% YoY, respectively.
  • Other income grew by 53.1% YoY.
  • Net profit for the year grew by 75.0% YoY.
  • Net profit margins during the year grew from 7.2% in FY17 to 10.7% in FY18.

NRB BEARINGS Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 7,255 8,551 17.9%
Other income Rs m 80 122 53.1%
Total Revenues Rs m 7,335 8,672 18.2%
Gross profit Rs m 1,167 1,683 44.1%
Depreciation Rs m 323 310 -4.2%
Interest Rs m 170 142 -16.9%
Profit before tax Rs m 753 1,353 79.6%
Tax Rs m 223 424 90.4%
Profit after tax Rs m 531 929 75.0%
Gross profit margin % 16.1 19.7
Effective tax rate % 29.6 31.3
Net profit margin % 7.2 10.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 15.8%.
  • Long-term debt down at Rs 689 million as compared to Rs 1 billion during FY17, a fall of 35.8%.
  • Current assets rose 19% and stood at Rs 5 billion, while fixed assets rose 7% and stood at Rs 3 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 8 billion as against Rs 7 billion during FY17, thereby witnessing a growth of 12%.

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 3,500 15.8
Long-term Debt Rs m 1,073 689 -35.8
Total Liabilities Rs m 7,233 8,104 12.0
 
Current assets Rs m 4,204 4,993 18.8
Fixed Assets Rs m 2,548 2,732 7.2
Total Assets Rs m 7,233 8,104 12.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 -97 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 -97 -88 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 174.0, stands at 16.2 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 3.7 times, while the price to sales ratio stands at 1.6 times.
  • The company's price to cash flow (P/CF) ratio stood at 13.6 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 74.9 88.2
TTM Earnings per share Rs 5.5 9.6
Diluted earnings per share Rs 5.5 9.6
Price to Cash Flow x 19.7 13.6
TTM P/E ratio x 16.2 16.2
Price / Book Value ratio x 3.9 3.7
Market Cap Rs m 16,859 16,859
Dividends per share (Unadj.) Rs 1.4 1.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 deteriorated and stood at 10.6x during FY18, from 5.4x 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 33.4% during FY18, from 22.5% 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 13.2% during FY18, from 9.7% 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 97 100
Interest coverage x 5.4 10.6
Debt to equity ratio x 0.4 0.2
Return on assets % 9.7 13.2
Return on equity % 17.5 24.6
Return on capital employed % 22.5 33.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 118.1 to Rs 174.0, registering a gain of Rs 55.9 or around 47.4%.

Overall, the S&P BSE SENSEX is up 21.2% over the year.

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

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NRB BEARINGS Announces Quarterly Results (3QFY19); Net Profit Up 25.7% (Quarterly Result Update)

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For the quarter ended December 2018, NRB BEARINGS has posted a net profit of Rs 268 m (up 25.7% YoY). Sales on the other hand came in at Rs 2 bn (up 16.7% YoY). Read on for a complete analysis of NRB BEARINGS's quarterly results.

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Here's an analysis of the annual report of NRB BEARINGS for 2017-18. It includes a full income statement, balance sheet and cash flow analysis of NRB BEARINGS. Also includes updates on the valuation of NRB BEARINGS.

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