NRB BEARINGS 2022-23 Annual Report Analysis

Fri, 31 Mar

NRB BEARINGS has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

NRB BEARINGS Income Statement Analysis

• Operating income during the year rose 12.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 16.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 15.8% in FY23 as against 15.1% in FY22.
• Depreciation charges increased by 9.8% and finance costs increased by 15.7% YoY, respectively.
• Other income grew by 61.7% YoY.
• Net profit for the year grew by 27.2% YoY.
• Net profit margins during the year grew from 8.0% in FY22 to 9.1% in FY23.

NRB BEARINGS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	9,428	10,572	12.1%
Other income	Rs m	142	229	61.7%
Total Revenues	Rs m	9,570	10,801	12.9%
Gross profit	Rs m	1,428	1,667	16.7%
Depreciation	Rs m	372	408	9.8%
Interest	Rs m	183	211	15.7%
Profit before tax	Rs m	1,016	1,276	25.7%
Tax	Rs m	259	315	21.3%
Profit after tax	Rs m	756	962	27.2%
Gross profit margin	%	15.1	15.8
Effective tax rate	%	25.5	24.7
Net profit margin	%	8.0	9.1

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NRB BEARINGS Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 5 billion as compared to Rs 4 billion in FY22, thereby witnessing an increase of 16.3%.
• Long-term debt stood at Rs 656 million as compared to Rs 605 million during FY22, a growth of 8.4%.
• Current assets rose 20% and stood at Rs 8 billion, while fixed assets rose 0% and stood at Rs 7 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 15 billion as against Rs 14 billion during FY22, thereby witnessing a growth of 10%.

NRB BEARINGS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	5,886	6,678	13.5
Current Liabilities	Rs m	4,116	4,786	16.3
Long-term Debt	Rs m	605	656	8.4
Total Liabilities	Rs m	13,756	15,111	9.9
Current assets	Rs m	6,596	7,938	20.4
Fixed Assets	Rs m	7,155	7,167	0.2
Total Assets	Rs m	13,756	15,111	9.9

NRB BEARINGS Cash Flow Statement Analysis

• NRB BEARINGS's cash flow from operating activities (CFO) during FY23 stood at Rs 608 million, an improvement of 278.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -440 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -133 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 36 million from the Rs -121 million net cash flows seen during FY22.

NRB BEARINGS Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	160	608	278.9%
Cash Flow from Investing Activities	Rs m	-502	-440	-
Cash Flow from Financing Activities	Rs m	216	-133	-
Net Cash Flow	Rs m	-121	36	-

Current Valuations for NRB BEARINGS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 9.9, an improvement from the EPS of Rs 7.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 134.0, stands at 13.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.9 times, while the price to sales ratio stands at 1.2 times.
• The company's price to cash flow (P/CF) ratio stood at 10.4 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	97.3	109.1
TTM Earnings per share	Rs	7.8	9.9
Diluted earnings per share	Rs	7.8	9.9
Price to Cash Flow	x	9.9	10.4
TTM P/E ratio	x	14.7	13.7
Price / Book Value ratio	x	2.3	2.1
Market Cap	Rs m	13,807	14,185
Dividends per share (Unadj.)	Rs	2.0	5.1

Ratio Analysis for NRB BEARINGS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.7x during FY23, from 1.6x during FY22. 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 7.0x during FY23, from 6.6x during FY22. 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 14.4% during FY23, from 12.8% during FY23. 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 20.3% during FY23, from 18.5% during FY22. 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 7.8% during FY23, from 6.8% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	1.6	1.7
Debtors’ Days	Days	834	768
Interest coverage	x	6.6	7.0
Debt to equity ratio	x	0.1	0.1
Return on assets	%	6.8	7.8
Return on equity	%	12.8	14.4
Return on capital employed	%	18.5	20.3

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 115.1 to Rs 134.0, registering a gain of Rs 18.9 or around 16.4%.

Overall, the S&P BSE SENSEX is up 1.8% over the year.

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