NRB BEARINGS 2018-19 Annual Report Analysis

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NRB BEARINGS 2018-19 Annual Report Analysis
Mon, 16 Sep

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 12.8% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 10.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 19.2% in FY19 as against 19.7% in FY18.
  • Depreciation charges increased by 13.9% and finance costs increased by 5.2% YoY, respectively.
  • Other income declined by 53.7% YoY.
  • Net profit for the year grew by 18.3% YoY.
  • Net profit margins during the year grew from 10.7% in FY18 to 11.3% in FY19.

NRB BEARINGS Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 8,551 9,649 12.8%
Other income Rs m 121 56 -53.7%
Total Revenues Rs m 8,673 9,705 11.9%
Gross profit Rs m 1,683 1,851 10.0%
Depreciation Rs m 310 353 13.9%
Interest Rs m 142 149 5.2%
Profit before tax Rs m 1,353 1,406 3.9%
Tax Rs m 424 472 11.3%
Profit after tax Rs m 929 1,099 18.3%
Gross profit margin % 19.7 19.2
Effective tax rate % 31.3 33.6
Net profit margin % 10.7 11.3
* 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 FY19 stood at Rs 4 billion as compared to Rs 3 billion in FY18, thereby witnessing an increase of 13.4%.
  • Long-term debt stood at Rs 829 million as compared to Rs 689 million during FY18, a growth of 20.4%.
  • Current assets rose 18% and stood at Rs 6 billion, while fixed assets rose 23% and stood at Rs 3 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 9 billion as against Rs 8 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 3,286 3,726 13.4
Long-term Debt Rs m 689 829 20.4
Total Liabilities Rs m 7,889 9,477 20.1
 
Current assets Rs m 4,754 5,613 18.1
Fixed Assets Rs m 2,744 3,370 22.8
Total Assets Rs m 7,889 9,477 20.1
* 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 FY19 stood at Rs 719 million on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs -906 million, an improvement of 95.0% 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 1,335 719 -46.1%
Cash Flow from Investing Activities Rs m -465 -906 -
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: Company Reports, Regulatory Filings, 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 99.8, stands at 12.7 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 1.8 times.
  • The company's price to cash flow (P/CF) ratio stood at 6.7 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 88.2 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 7.8 6.7
TTM P/E ratio x 12.7 12.7
Price / Book Value ratio x 3.7 3.7
Market Cap Rs m 9,668 9,668
Dividends per share (Unadj.) Rs 1.4 2.6
* 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 1.5x 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 deteriorated and stood at 10.4x during FY19, from 10.6x 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 31.1% during FY19, from 33.4% 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 13.2% during FY19, from 13.6% 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 100 81
Interest coverage x 10.6 10.4
Debt to equity ratio x 0.2 0.2
Return on assets % 13.6 13.2
Return on equity % 24.6 23.4
Return on capital employed % 33.4 31.1
* 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 down from Rs 169.3 to Rs 99.8, registering a loss of Rs 69.6 or around 41.1%.

Overall, the S&P BSE SENSEX is down 2.3% 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 (1QFY20); Net Profit Down 75.0% (Quarterly Result Update)

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For the quarter ended June 2019, NRB BEARINGS has posted a net profit of Rs 87 m (down 75.0% YoY). Sales on the other hand came in at Rs 2 bn (down 11.1% YoY). Read on for a complete analysis of NRB BEARINGS's quarterly results.

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