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* Revenues increased by 8.83% in Q3FY23 to Rs.2,511 million. NRB reported strong performance due to a sharp focus on fundamental business operations and an upsurge in demand across all vehicle segments within the automobile industry. The e-vehicle segment witnessed a boost in business, particularly from exports.

* EBITDA jumped by 17.45% and margins improved by 100bps in Q3FY23, mainly because of improved margins by a combination of price increase and operational efficiency. Logistics cost improved in the last quarter resulting in saving in the costs. Cost reduction measures have shown results and led to improved Cost of Goods Sold.

* PAT increased by 38.19% in Q3FY23 to Rs.234 million led by enhanced product mix and high margins for export sales to Europe and North America for high end new platformsincluding hybrid and E-mobility.

* For the nine month Revenues up by 8.2% to Rs.7,447 million. EBITDA increased by 4.3% on YoY to Rs.1,078 million with margins clock at 14.5%. PAT up by 16.8% to Rs.612 million as compared to last year same period was Rs.524 million.

* The bearing market in India is gaining significant importance due to the upscaling use of bearing in motors. Additionally, growing automotive electrification, accompanied by the rising initiatives by the Indian government, including ‘Make in India’ and ‘Aatmanirbhar Bharat’, will escalate the growth of the India bearing market. NRB is well positioned to capture market share with our expanded product portfolio in the E-Mobility/EV segment.

* NRB’s focus and embracing of future technologies along with re-inventing and altering its capabilities has led the Company to supplying the world’s foremost E-Vehicles. We valued NRB at Rs 174 i.e. 17x P/E on FY24E EPS. We maintain a BUY on NRB Bearings Limited.

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