- 31 May 2023
- ICICI Securities
NRB Bearings reports better than expected operational performance
NRBBEARING - 323 Change: 6.35 (2.01 %)News: Revenue for the quarter came in at Rs 312.4 crore (up 22.2% YoY and 24.4% QoQ); better than our estimate of Rs 288.9 crore. FY23 revenue is up 12% YoY to Rs 1057.2 crore. Gross margin was at 60.4% in Q4FY23 (flat YoY but lower by 330 bps QoQ). EBIDTA margin improved 361 bps YoY and 675 bps QoQ to 20.5% (vs. our estimate of 16.6%). For FY23, EBITDA margin was at 16.3% (+80 bps YoY). EBIDTA increased 48.4% YoY (+85.6% QoQ) to Rs 64.0 crore (vs. our estimate of Rs 47.9 crore) led by better margins. FY23 EBITDA was up 17.3% YoY to Rs 171.8 crore. PAT increased 93.2% YoY (+43.9% QoQ) to Rs 33.7 crore. FY23 PAT was at Rs 94.9 crore (+25.5% YoY).
Views: NRB’s operational performance during the quarter was better than expectations. The company has a strong product portfolio across automotive segments and exports. With focus on further improving the product mix towards e-mobility agnostic products, we believe the company’s growth from domestic automotive segment will remain healthy in the coming period. Moreover, recovery in exports will also be a key driver as it contributes significantly to the company’s revenues. The company is also in process of selling its land & buildings at Thane and Aurangabad, which would help company in fund the capex and bring down debt levels.
Impact: Positive