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NRB BEARINGS 2018-19 Annual Report Analysis
Sun, 31 Mar

NRB BEARINGS has announced its results for the year ended March 2019. Let us have a look at the detailed performance review of the company during FY18-19.

NRB BEARINGS Income Statement Analysis

  • Operating income during the year rose 15.4% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 19.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 21.0% in FY19 as against 20.2% in FY18.
  • Depreciation charges increased by 13.9% and finance costs increased by 4.6% YoY, respectively.
  • Other income declined by 54.6% YoY.
  • Net profit for the year grew by 18.3% YoY.
  • Net profit margins during the year grew from 11.1% in FY18 to 11.4% in FY19.

NRB BEARINGS Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 8,364 9,650 15.4%
Other income Rs m 121 55 -54.6%
Total Revenues Rs m 8,485 9,705 14.4%
Gross profit Rs m 1,692 2,026 19.7%
Depreciation Rs m 310 353 13.9%
Interest Rs m 150 157 4.6%
Profit before tax Rs m 1,353 1,571 16.1%
Tax Rs m 424 472 11.3%
Profit after tax Rs m 929 1,099 18.3%
Gross profit margin % 20.2 21.0
Effective tax rate % 31.3 30.0
Net profit margin % 11.1 11.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Read Now: We're Bullish on 2 Non-Nifty Stocks

NRB BEARINGS Balance Sheet Analysis

  • The company's current liabilities during FY19 stood at Rs 4 billion as compared to Rs 4 billion in FY18, thereby witnessing an increase of 3.2%.
  • Long-term debt stood at Rs 829 million as compared to Rs 689 million during FY18, a growth of 20.4%.
  • Current assets rose 10% and stood at Rs 6 billion, while fixed assets rose 30% and stood at Rs 7 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 12 billion as against Rs 10 billion during FY18, thereby witnessing a growth of 20%.

NRB BEARINGS Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 3,780 4,705 24.5
 
Current Liabilities Rs m 3,611 3,726 3.2
Long-term Debt Rs m 689 829 20.4
Total Liabilities Rs m 10,083 12,126 20.3
 
Current assets Rs m 5,079 5,613 10.5
Fixed Assets Rs m 5,004 6,513 30.2
Total Assets Rs m 10,083 12,126 20.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



NRB BEARINGS Cash Flow Statement Analysis

  • NRB BEARINGS's cash flow from operating activities (CFO) during FY19 stood at Rs 707 million on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs -893 million, an improvement of 92.3% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs 358 million, an improvement of 137% on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs 174 million from the Rs -88 million net cash flows seen during FY18.

NRB BEARINGS Cash Flow Statement 2018-19

Particulars No. of months 12 12 % Change
Year Ending Mar-18 Mar-19
Cash Flow from Operating Activities Rs m 1,335 707 -47.0%
Cash Flow from Investing Activities Rs m -465 -893 -
Cash Flow from Financing Activities Rs m -960 358 -
Net Cash Flow Rs m -88 174 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for NRB BEARINGS

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 11.3, an improvement from the EPS of Rs 9.6 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 189.6, stands at 18.0 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 1.9 times.
  • The company's price to cash flow (P/CF) ratio stood at 12.1 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Sales per share (Unadj.) Rs 86.3 99.6
TTM Earnings per share Rs 9.6 11.3
Diluted earnings per share Rs 9.6 11.3
Price to Cash Flow x 12.0 12.1
TTM P/E ratio x 18.1 18.0
Price / Book Value ratio x 3.7 3.7
Market Cap Rs m 14,051 17,625
Dividends per share (Unadj.) Rs 2.6 2.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for NRB BEARINGS

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.5x during FY19, from 1.4x during FY18. 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 11.0x during FY19, from 10.0x during FY18. 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 declined and down at 23.4% during FY19, from 24.6% during FY19. 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 declined and down at 31.2% during FY19, from 33.6% during FY18. 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 declined and down at 10.4% during FY19, from 10.7% during FY18. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Current ratio x 1.4 1.5
Debtors’ Days Days 1,019 813
Interest coverage x 10.0 11.0
Debt to equity ratio x 0.2 0.2
Return on assets % 10.7 10.4
Return on equity % 24.6 23.4
Return on capital employed % 33.6 31.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, 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 153.1 to Rs 189.6, registering a gain of Rs 36.5 or around 23.8%.

Overall, the S&P BSE SENSEX is up 16.3% over the year.

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

Annual Report FAQs

What is the current share price of NRB BEARINGS?

NRB BEARINGS currently trades at Rs 268.1 per share. You can check out the latest share price performance of NRB BEARINGS here...

What was the revenue of NRB BEARINGS in FY19? How does it compare to earlier years?

The revenues of NRB BEARINGS stood at Rs 9,705 m in FY19, which was up 14.4% compared to Rs 8,485 m reported in FY18.

NRB BEARINGS' revenue has grown from Rs 6,142 m in FY16 to Rs 9,705 m in FY19.

Over the past 4 years, the revenue of NRB BEARINGS has grown at a CAGR of 16.5%.

What was the net profit of NRB BEARINGS in FY19? How does it compare to earlier years?

The net profit of NRB BEARINGS stood at Rs 1,099 m in FY19, which was up 18.3% compared to Rs 929 m reported in FY18.

This compares to a net profit of Rs 531 m in FY17 and a net profit of Rs 432 m in FY16.

Over the past 4 years, NRB BEARINGS net profit has grown at a CAGR of 36.5%.

What does the cash flow statement of NRB BEARINGS reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of NRB BEARINGS reveals:

  • Cash flow from operations decreased in FY19 and stood at Rs 707 m as compared to Rs 1,335 m in FY18.
  • Cash flow from investments decreased in FY19 and stood at Rs -893 m as compared to Rs -465 m in FY18.
  • Cash flow from financial activity increased in FY19 and stood at Rs 358 m as compared to Rs -960 m in FY18.

Here's the cash flow statement of NRB BEARINGS for the past 4 years.

(Rs m)FY16FY17FY18FY19
From Operations9198511,335707
From Investments-96-254-465-893
From Financial Activity-787-694-960358
Net Cashflow36-96-88174

What does the Key Ratio analysis of NRB BEARINGS reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of NRB BEARINGS reveals:

  • Operating profit margins witnessed a fall and down at 21.0% in FY19 as against 20.2% in FY18.
  • Net profit margins grew from 11.1% in FY18 to 11.4% in FY19.
  • Debt to Equity ratio for FY19 stood at 0.2 as compared to 0.2 in FY18.

Here's the ratio/financial analysis of NRB BEARINGS for the past 4 years.

 FY16FY17FY18FY19
Operating Profit Margin (%)18.217.920.221.0
Net Profit Margin (%)7.18.111.111.4
Debt to Equity Ratio (x)0.20.40.20.2

Read: Latest Annual Report Analysis of NRB BEARINGS

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