- 09 Nov 2022
- ICICIdirect Research
NRB reports weak set of Q2FY23 numbers
NRBBEARING - 323 Change: 2.60 (0.81 %)News:
Revenue for the quarter came in at Rs 257.7 crore, up 0.4% YoY & 9.1% QoQ (vs. I-direct estimate of Rs 269.2 crore). Gross margins declined ~760 bps QoQ. Declining GMs are possibly due to product mix and low exports. NRB registered an EBIDTA margin of 11.8% vs 18.4% YoY and 18.2% QoQ. Pressure on EBIDTA was due to lower GMs. Absolute EBIDTA came in at Rs 30.5 crore, down 29.1% QoQ and 35.7% YoY (I-direct estimate of Rs 50.3 crore). Employee cost increased 5.9% QoQ to Rs 40 crore. Other expenses increased by 6.4% QoQ to Rs 75.6 crore. Tracking its operating performance, NRB ended the quarter with PAT of Rs 13.3 crore down 45.7% QoQ, 45.5% YoY
View:
NRB posted a weak set of numbers for the exit quarter. Gross margins were severely impacted. Possible reason for the declining GMs are its portfolio mix for current quarter and muted exports. NRB’s revenues are 100% from automotive segment. We have seen a recovery in the auto sector especially 2-W but NRB has not gained any momentum despite that. NRB lacks rapid innovation compared to other listed peers largely due to its parent company's R&D. Thus, we change our view from positive to neutral
Impact:
Negative