NRB Reports First Quarter 2007 Results
NRB Bearings Ltd. (India; BSE SMALLCAP: 530367) reported financial results for fiscal first quarter 2007, ended June 30, 2006.
NRB manufactures needle bearings and cylindrical roller bearings, primarily targeting the fast-growing automotive OEM market in India. Successes there are being leveraged into other markets.
Sales reached Rs 690.6 million (USD $ million), up from Rs 591 million ($ million) a year ago and continuing a long series of steady gains.
Net profit reached Rs 86 million, from Rs 77.1 million a year ago, but potential for further improvement was hurt by significantly higher interest expense.
On the other hand, that higher interest expense is tied to debt load NRB has taken on to finance a massive expansion program -- proportionately, the largest ongoing program in the bearing industry today.
By 2008, NRB said it intends to more than double its manufacturing capacity for needle roller bearings, and more than triple its capacity for cylindrical roller bearings. The company has five manufacturing facilities across India.
Its publicly traded, 69% owned subsidiary, SNL Bearings Ltd., is referred to as an issue qualifying NRB's audit report because SNL has a negative book value. However, SNL's profits in recent months have largely turned around the deficit at SNL and its performance should continue to benefit both organizations.
Harshbeena Zaveri, NRB President, commented: "As always, our focus will continue to remain on the automotive OEM customer, in India and overseas. We have made significant strides to be seen as a responsive supplier and a competitive producer of needle and cylindrical bearings. We continue to invest in R&D and engineering to drive our capabilities to develop products for new customers as well as new applications for our existing customers."
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