NRB Bearings - Q4FY21 First Cut - ICICI Direct

(CMP: Rs. 118; MCap: Rs. 1150 crore)

NRB's Q4 performance was a beat to our estimates on all parameters. The company posted strong topline growth as well as improvement in margin spreads despite the recent commodity inflation.

Q4FY21 Earnings Summary

- Revenue for the quarter came in at Rs. 257.2 crore, up 37.2% YoY & 5.1% QoQ (vs I-direct estimate of Rs. 230.1 crore). With this, the company exited FY21 with a decline of merely 1.7% in revenues despite a washout H1.

- The key surprise to us was the Gross margins, which improved 380 bps YoY & 86 bps QoQ. Employee cost increased 13.7% YoY whereas other expenses increased 24.3% YoY. NRB's Q4 EBIDTA margins came in at 18.2% vs 8.2% YoY & 17.6% QoQ (I-direct estimate at 15%). Absolute EBIDTA came in at Rs. 46.8 crore, up 203% YoY & 8% QoQ (vs I-direct estimate at Rs. 34.5 crore).

- Ensuing PAT came in at Rs. 34.6 crore vs Rs. 4.2 in Q4FY20 (I-direct estimate at (Rs. 17.3 crore). Tax rate for the quarter was at 11.9%.

- During FY21, the company's overall debt came down by Rs. 97.8 crore. NRB generated CFO to the tune of Rs. 157.8 crore

We will come out with a detailed report soon.

Shares of NRB BEARINGS LTD. was last trading in BSE at Rs.121.85 as compared to the previous close of Rs. 118.65. The total number of shares traded during the day was 197868 in over 3721 trades.

The stock hit an intraday high of Rs. 126.5 and intraday low of 121.4. The net turnover during the day was Rs. 24431195.

Source : Equity Bulls

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