NRB BEARINGS 2020-21 Annual Report Analysis

Wed, 31 Mar

NRB BEARINGS has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

NRB BEARINGS Income Statement Analysis

• Operating income during the year fell 1.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 20.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 13.7% in FY21 as against 11.1% in FY20.
• Depreciation charges decreased by 7.8% and finance costs increased by 0.6% YoY, respectively.
• Other income declined by 6.2% YoY.
• Net profit for the year grew by 67.8% YoY.
• Net profit margins during the year grew from 4.3% in FY20 to 7.3% in FY21.

NRB BEARINGS Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	7,760	7,624	-1.7%
Other income	Rs m	161	151	-6.2%
Total Revenues	Rs m	7,920	7,775	-1.8%
Gross profit	Rs m	865	1,046	20.9%
Depreciation	Rs m	333	307	-7.8%
Interest	Rs m	225	226	0.6%
Profit before tax	Rs m	468	664	41.9%
Tax	Rs m	136	107	-21.3%
Profit after tax	Rs m	332	557	67.8%
Gross profit margin	%	11.1	13.7
Effective tax rate	%	29.1	16.2
Net profit margin	%	4.3	7.3

Revealing on April 30: Are You Ready for the Upcoming Election Surprise?

NRB BEARINGS Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 3 billion as compared to Rs 4 billion in FY20, thereby witnessing an decrease of -22.8%.
• Long-term debt stood at Rs 894 million as compared to Rs 732 million during FY20, a growth of 22.1%.
• Current assets fell 2% and stood at Rs 5 billion, while fixed assets fell 1% and stood at Rs 7 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 12 billion as against Rs 13 billion during FY20, thereby witnessing a fall of 1%.

NRB BEARINGS Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	4,569	5,177	13.3
Current Liabilities	Rs m	4,261	3,291	-22.8
Long-term Debt	Rs m	732	894	22.1
Total Liabilities	Rs m	12,572	12,390	-1.4
Current assets	Rs m	5,536	5,410	-2.3
Fixed Assets	Rs m	7,036	6,980	-0.8
Total Assets	Rs m	12,572	12,390	-1.4

NRB BEARINGS Cash Flow Statement Analysis

• NRB BEARINGS's cash flow from operating activities (CFO) during FY21 stood at Rs 2 billion, an improvement of 54.4% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -309 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -1 billion on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs -16 million from the Rs 463 million net cash flows seen during FY20.

NRB BEARINGS Cash Flow Statement 2020-21

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-20	Mar-21
Cash Flow from Operating Activities	Rs m	1,022	1,578	54.4%
Cash Flow from Investing Activities	Rs m	-653	-309	-
Cash Flow from Financing Activities	Rs m	92	-1,287	-
Net Cash Flow	Rs m	463	-16	-

Current Valuations for NRB BEARINGS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 5.7, an improvement from the EPS of Rs 3.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 108.5, stands at 18.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.0 times, while the price to sales ratio stands at 1.4 times.
• The company's price to cash flow (P/CF) ratio stood at 10.1 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Sales per share (Unadj.)	Rs	80.1	78.7
TTM Earnings per share	Rs	3.4	5.7
Diluted earnings per share	Rs	3.4	5.7
Price to Cash Flow	x	8.6	10.1
TTM P/E ratio	x	17.3	18.9
Price / Book Value ratio	x	2.7	1.7
Market Cap	Rs m	12,256	8,704
Dividends per share (Unadj.)	Rs	0.8	0.5

Ratio Analysis for NRB BEARINGS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.6x during FY21, from 1.3x during FY20. 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 3.9x during FY21, from 3.1x during FY20. 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 10.8% during FY21, from 7.3% during FY21. 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 14.7% during FY21, from 13.1% during FY20. 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 6.3% during FY21, from 4.4% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Current ratio	x	1.3	1.6
Debtors’ Days	Days	942	999
Interest coverage	x	3.1	3.9
Debt to equity ratio	x	0.2	0.2
Return on assets	%	4.4	6.3
Return on equity	%	7.3	10.8
Return on capital employed	%	13.1	14.7

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 59.1 to Rs 108.5, registering a gain of Rs 49.4 or around 83.6%.

Overall, the S&P BSE SENSEX is up 74.1% 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