NRB BEARINGS 2023-24 Annual Report Analysis

Mon, 2 Sep

NRB BEARINGS has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

NRB BEARINGS Income Statement Analysis

• Operating income during the year rose 3.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 120.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 33.2% in FY24 as against 15.6% in FY23.
• Depreciation charges increased by 6.2% and finance costs increased by 13.4% YoY, respectively.
• Other income declined by 22.3% YoY.
• Net profit for the year grew by 151.2% YoY.
• Net profit margins during the year grew from 9.1% in FY23 to 22.1% in FY24.

NRB BEARINGS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	10,572	10,940	3.5%
Other income	Rs m	229	178	-22.3%
Total Revenues	Rs m	10,801	11,118	2.9%
Gross profit	Rs m	1,652	3,637	120.2%
Depreciation	Rs m	408	433	6.2%
Interest	Rs m	196	223	13.4%
Profit before tax	Rs m	1,276	3,159	147.5%
Tax	Rs m	315	744	136.3%
Profit after tax	Rs m	962	2,415	151.2%
Gross profit margin	%	15.6	33.2
Effective tax rate	%	24.7	23.5
Net profit margin	%	9.1	22.1

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NRB BEARINGS Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 3 billion as compared to Rs 4 billion in FY23, thereby witnessing an decrease of -30.1%.
• Long-term debt down at Rs 268 million as compared to Rs 656 million during FY23, a fall of 59.1%.
• Current assets rose 4% and stood at Rs 8 billion, while fixed assets rose 0% and stood at Rs 7 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 15 billion as against Rs 15 billion during FY23, thereby witnessing a growth of 2%.

NRB BEARINGS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	6,678	8,599	28.8
Current Liabilities	Rs m	4,444	3,107	-30.1
Long-term Debt	Rs m	656	268	-59.1
Total Liabilities	Rs m	14,769	15,074	2.1
Current assets	Rs m	7,598	7,877	3.7
Fixed Assets	Rs m	7,166	7,197	0.4
Total Assets	Rs m	14,769	15,074	2.1

NRB BEARINGS Cash Flow Statement Analysis

• NRB BEARINGS's cash flow from operating activities (CFO) during FY24 stood at Rs 1 billion, an improvement of 89.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 1 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -2 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -65 million from the Rs 36 million net cash flows seen during FY23.

NRB BEARINGS Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	608	1,152	89.5%
Cash Flow from Investing Activities	Rs m	-440	1,022	-
Cash Flow from Financing Activities	Rs m	-133	-2,216	-
Net Cash Flow	Rs m	36	-65	-

Current Valuations for NRB BEARINGS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 24.9, an improvement from the EPS of Rs 9.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 322.2, stands at 12.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.6 times, while the price to sales ratio stands at 2.9 times.
• The company's price to cash flow (P/CF) ratio stood at 9.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	109.1	112.9
TTM Earnings per share	Rs	9.9	24.9
Diluted earnings per share	Rs	9.9	24.9
Price to Cash Flow	x	9.5	9.0
TTM P/E ratio	x	13.5	12.6
Price / Book Value ratio	x	2.1	3.0
Market Cap	Rs m	14,185	25,721
Dividends per share (Unadj.)	Rs	5.1	5.1

Ratio Analysis for NRB BEARINGS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.5x during FY24, from 1.7x during FY23. 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 15.2x during FY24, from 7.5x during FY23. 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 28.1% during FY24, from 14.4% during FY24. 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 38.1% during FY24, from 20.1% during FY23. 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 17.5% during FY24, from 7.8% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	1.7	2.5
Debtors’ Days	Days	772	574
Interest coverage	x	7.5	15.2
Debt to equity ratio	x	0.1	0.0
Return on assets	%	7.8	17.5
Return on equity	%	14.4	28.1
Return on capital employed	%	20.1	38.1

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 268.3 to Rs 322.2, registering a gain of Rs 53.9 or around 20.1%.

Overall, the S&P BSE SENSEX is up 26.8% over the year.

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