NRB Bearings hits over 2-year high; surges 25% in 4 days on strong outlook

NRB Bearing is in hybrid vehicles across segments for Marquee customers in Europe and USA and in applications for E-Mobility vehicles across segments, which is the growth driver for exports

Shares of NRB Bearings hit an over two-year high of Rs 171.40 after they rallied 12 per cent on the BSE in Tuesday's intra-day trade on strong outlook. The stock of the company, engaged in manufacturing of needle roller bearings, has surged 25 per cent in the past four trading days. It was trading at its highest level since June 2019. It had hit a record high of Rs 224 on December 17, 2018.

NRB Bearings is a recognised leader in needle roller bearings, conventional cylindrical roller bearings and has developed a new generation of lightweight drawn cup bearings. The company has two manufacturing subsidiaries viz. SNL Bearings Limited (SNL), NRB Bearings (Thailand) Limited (NRBT).

For July to September quarter (Q2FY22), NRB Bearings had reported 143 per cent year on year (YoY) jump in profit after tax (PAT) at Rs 22.57 crore. It had posted PAT of Rs 9.28 crore in Q2FY21. Revenues of the company also grew 30 per cent YoY to Rs 242.82 crore from Rs 186.29 crore in the-year ago quarter. Earnings before interest, taxes, depreciation, amortization (EBITDA) margins improved 280 basis points to 17.3 per cent due to better capacity utilisation rate and efficiency.

The company said revival and opening-up of economy post pandemic led to normalcy in business; thus the company ended the first half of fiscal year 2022 with revenue growth of 76 per cent. The faster adoption and development of newer products for BS-VI; has also helped in increase the revenue during the period, it added.

NRB is in hybrid vehicles across segments for Marquee customers in Europe and USA and in applications for E-Mobility vehicles across segments, which is the growth driver for exports.

"In next 2-3 years, the company have capital expenditure plan of Rs 200 crore, which include setting up of a global Innovation Centre for future electric mobility in Dubai’s prestigious DIFC. The capacity expansion in Thailand subsidiary by additional capex investment of Rs 35 crore over the next 2 financial years," the company said.

With strong R&D capabilities, Company has developed newer products with the adoption of BS VI norms and e-mobility trend. Going ahead, the management said the company will leverage its capabilities to have market share gain.

"Our strong export order book is another advantage, and we expect substantial and continuing growth in exports with the re-structuring of our subsidiaries. We are gearing up for the ‘next normal’ as new opportunities and industry dynamics get redefined," Harshbeena Zaveri, Managing Director of NRB Bearings said.