Q1 2027 NRB Bearings Ltd Earnings Call Transcript
Key Points
- Consolidated revenue grew 19.2% YoY to INR 370 crores, with standalone PAT up 31.7% and EBITDA up 21.7%, demonstrating strong profitable growth.
- Secured a production order for high-precision planet pins for the General Motors Corvette program, marking the first win for the new USA facility and validating the 'Making in USA' strategy.
- Lifetime nominated business increased from INR 800 crores to INR 1,100 crores, driven by new wins like the Corvette program and other platform conversions.
- Industrial business grew 34% YoY, now contributing 14% of total revenue, up from 11%, reflecting successful diversification into high-margin industrial segments.
- Acquisition of Mahant Toolroom provides immediate access to aerospace and defense markets with a pre-certified platform, bypassing long gestation periods, and has already secured breakthrough orders like the Sukhoi 30 spherical bearing.
- Other expenses increased by INR 10 crores quarter-on-quarter due to cost escalations in electricity, logistics, and petroleum products, pressuring margins.
- The aerospace and defense order book remains small at approximately INR 50 crores, with uncertainty in the timing of revenue conversion from long-cycle aerospace programs.
- Management refrained from providing specific quarterly or annual guidance for the aerospace business, citing unpredictability in order timing and customer decisions.
- The company's margin guidance remains conservative at 18-20%, with management emphasizing that quarterly fluctuations can occur due to cost escalations and market fluidity.
- The relocation of the Unitech JV plant from Hyderabad to Aurangabad, while strategic, may cause delays or additional costs, though the company aims to commission by April 2027.
(Operator Instructions)
Ladies and gentlemen, good day and welcome to the NRB Bearings Ltd Q1 FY-2027 Earnings Conference Call. Please note that this call is being recorded. I now hand the conference over to Mr. Diwakar Pingle, Ernst & Young. Thank you. Over to you, sir.
Thank you. Good afternoon to all the participants in this call. Before we proceed to this call, let me remind you that the discussion may contain forward-looking statements that may involve known unknown risks, uncertainties, and other factors. It must be good in connection with the business risks that could cause future result performance or achievement to differ significantly from what is expressed or implied by such forward-looking statements.
Please note that we've mailed the results and the same available on the company's website. In case if you have not received the same, you can write to us, and we'll be happy to send the same over to you. To take us through the results and answer your questions today,
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