- 14 Feb 2024
- ICICIdirect Research
NRB BEARINGS FLATTISH OPERATIONAL PERFORMANCE YOY; SALE OF LAND LED TO SIGNIFICANT INCREASE IN PAT
NRBBEARING - 304 Change: -4.65 (-1.51 %)News: Revenue was up 2.9% YoY (-7.4% QoQ) to Rs 258.4 crore. EBIDTA margin remained flattish YoY at 13.8% (-249 bps QoQ). Subsequently, EBIDTA was up 3.7% YoY (-21.5 QoQ) to Rs 35.7 crore. PAT was up significantly at Rs 166.1 crore (vs Rs 23.5 crore in Q3FY23 and Rs 24.6 crore in Q2FY24) as it includes Rs 182 crore of exceptional item (related to sale of land). For 9MFY24, revenue is up 8.7% YoY to Rs 809.4 crore while EBITDA is up 17.4% YoY to Rs 126.6 crore as margins expanded by 116 bps YoY during the period.
View: Operational performance during the quarter was subdued. Going ahead, with focus on improving the product mix towards e-mobility agnostic products, we believe that 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 recent land sale would also help company in deleveraging of balance sheet and execute its capex in electric vehicle segment
Impact: Neutral