NRB Bearings - Margins Expand; Positive Surprise: ICICI Direct
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ICICI Direct Report
NRB Bearings Ltd.'s Q4 performance was a beat on our estimates on all parameters.
The company posted strong topline growth as well as improvement in margin spreads despite the recent commodity inflation.
Revenue for the quarter came in at Rs 257.2 crore, up 37.2% YoY, 5.1% QoQ (versus our 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 gross margins, which improved 380 basis points YoY, 86 basis points QoQ.
Employee cost increased 13.7% YoY whereas other expenses increased 24.3% YoY.
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