NRB BEARINGS 2021-22 Annual Report Analysis

Wed, 7 Sep

NRB BEARINGS has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

NRB BEARINGS Income Statement Analysis

• Operating income during the year rose 23.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 37.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 15.3% in FY22 as against 13.7% in FY21.
• Depreciation charges increased by 21.1% and finance costs decreased by 19.1% YoY, respectively.
• Other income declined by 15.4% YoY.
• Net profit for the year grew by 35.7% YoY.
• Net profit margins during the year grew from 7.3% in FY21 to 8.0% in FY22.

NRB BEARINGS Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	7,624	9,442	23.8%
Other income	Rs m	151	128	-15.4%
Total Revenues	Rs m	7,775	9,570	23.1%
Gross profit	Rs m	1,046	1,442	37.9%
Depreciation	Rs m	307	372	21.1%
Interest	Rs m	226	183	-19.1%
Profit before tax	Rs m	664	1,016	52.9%
Tax	Rs m	107	259	141.8%
Profit after tax	Rs m	557	756	35.7%
Gross profit margin	%	13.7	15.3
Effective tax rate	%	16.2	25.5
Net profit margin	%	7.3	8.0

NRB BEARINGS Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 4 billion as compared to Rs 3 billion in FY21, thereby witnessing an increase of 23.9%.
• Long-term debt down at Rs 605 million as compared to Rs 894 million during FY21, a fall of 32.3%.
• Current assets rose 21% and stood at Rs 7 billion, while fixed assets rose 3% and stood at Rs 7 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 14 billion as against Rs 12 billion during FY21, thereby witnessing a growth of 11%.

NRB BEARINGS Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	5,177	5,886	13.7
Current Liabilities	Rs m	3,291	4,076	23.9
Long-term Debt	Rs m	894	605	-32.3
Total Liabilities	Rs m	12,390	13,728	10.8
Current assets	Rs m	5,411	6,558	21.2
Fixed Assets	Rs m	6,979	7,170	2.7
Total Assets	Rs m	12,390	13,728	10.8

NRB BEARINGS Cash Flow Statement Analysis

• NRB BEARINGS's cash flow from operating activities (CFO) during FY22 stood at Rs 156 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -502 million, an improvement of 57.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 220 million, an improvement of 117% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -121 million from the Rs -27 million net cash flows seen during FY21.

NRB BEARINGS Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	1,578	156	-90.1%
Cash Flow from Investing Activities	Rs m	-320	-502	-
Cash Flow from Financing Activities	Rs m	-1,287	220	-
Net Cash Flow	Rs m	-27	-121	-

Current Valuations for NRB BEARINGS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 7.8, an improvement from the EPS of Rs 5.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 165.1, stands at 19.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.7 times, while the price to sales ratio stands at 1.7 times.
• The company's price to cash flow (P/CF) ratio stood at 12.2 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	78.7	97.4
TTM Earnings per share	Rs	5.7	7.8
Diluted earnings per share	Rs	5.7	7.8
Price to Cash Flow	x	12.2	12.2
TTM P/E ratio	x	18.9	19.2
Price / Book Value ratio	x	1.7	2.3
Market Cap	Rs m	8,704	13,807
Dividends per share (Unadj.)	Rs	0.5	2.0

Ratio Analysis for NRB BEARINGS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.6x during FY22, from 1.6x during FY21. 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 6.6x during FY22, from 3.9x during FY21. 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 12.8% during FY22, from 10.8% during FY22. 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 18.5% during FY22, from 14.7% during FY21. 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 6.8% during FY22, from 6.3% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	1.6	1.6
Debtors’ Days	Days	999	832
Interest coverage	x	3.9	6.6
Debt to equity ratio	x	0.2	0.1
Return on assets	%	6.3	6.8
Return on equity	%	10.8	12.8
Return on capital employed	%	14.7	18.5

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 133.5 to Rs 165.1, registering a gain of Rs 31.6 or around 23.6%.

Overall, the S&P BSE SENSEX is up 1.2% 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