💰 Financial Performance

Revenue Growth by Segment

Total Operating Income (TOI) declined by 9% YoY in FY24 to INR 74.95 Cr from INR 81.35 Cr in FY23. In Q1FY25, revenue further dropped to INR 14.41 Cr, representing a 17.4% decline compared to Q1FY24 revenue of INR 17.45 Cr.

Geographic Revenue Split

Exports account for approximately 35% of total sales, primarily directed towards the European market. The remaining 65% is generated from the domestic Indian market.

Profitability Margins

The company is currently loss-making at the net level. PAT loss widened by 100% from a loss of INR 13.12 Cr in FY23 to a loss of INR 26.15 Cr in FY24. Net profit margin is significantly negative due to high fixed costs and declining turnover.

EBITDA Margin

PBILDT margin turned negative in FY24, reporting a loss of INR 6.64 Cr compared to a positive PBILDT of INR 4.72 Cr (5.8% margin) in FY23. This deterioration is driven by a 9% drop in revenue and high working capital requirements.

Capital Expenditure

Not disclosed in available documents; however, the company maintains a manufacturing facility in Shendra, Aurangabad, and focuses on maintaining inventory levels which stood at INR 25.85 Cr in FY24.

Credit Rating & Borrowing

The company is rated CARE BB; Stable; ISSUER NOT COOPERATING. Interest coverage ratio deteriorated from 0.48x in FY23 to -0.59x in FY24, indicating that operating profits are insufficient to cover interest costs.

⚙️ Operational Drivers

Raw Materials

Steel and specialized alloys for industrial bearings (needle roller and cylindrical roller bearings). Specific cost percentages for each material are not disclosed.

Import Sources

Not specifically disclosed, though the company positions itself as a substitute for low-cost imports from China.

Capacity Expansion

Current manufacturing facility is located in Shendra, Aurangabad. Specific MTPA or unit capacity figures and expansion timelines are not disclosed.

Raw Material Costs

Raw material costs are a significant portion of the cost structure; inventory levels increased to INR 25.85 Cr in FY24 (34.5% of TOI) to cater to minimum batch requirements and replacement segment demand.

Manufacturing Efficiency

Inventory turnover improved by 12% in FY23, though overall performance deteriorated in FY24 due to lower capacity utilization following a 9% drop in TOI.

📈 Strategic Growth

Expected Growth Rate

Not disclosed in available documents

Growth Strategy

Growth is targeted through aggressive export expansion beyond Europe to GCC countries, Nepal, Bangladesh, Brazil, Canada, US, Turkey, and South Africa. The company also aims to capture market share from Chinese imports by positioning as a domestic substitute under the 'Make in India' initiative.

Products & Services

All types of industrial bearings, specifically needle roller bearings and cylindrical roller bearings used in industrial machinery and automotive applications.

Brand Portfolio

NIBL, NRB Industrial Bearings.

Market Expansion

Targeting expansion into GCC, North America (US/Canada), and BRICS nations (Brazil/South Africa) to reduce dependence on the European market (currently 35% of sales).

Market Share & Ranking

The flagship group company, NRB Bearings Ltd, is India's largest needle roller and cylindrical roller bearing producer; NIBL focuses specifically on the industrial division.

Strategic Alliances

Part of the NRB Group; maintains associates/JVs including NRB-IBC Bearings Private Limited and NIBL-Korta Engineering Private Limited.

🌍 External Factors

Industry Trends

The industry is shifting toward increased automation and precision manufacturing. The bearings market is currently benefiting from 'Make in India' and infrastructure thrust, though it remains highly cyclical with a current trend of moderate growth in industrial segments.

Competitive Landscape

Competes with large organized players in India and low-cost manufacturers from China.

Competitive Moat

The company's moat is based on the Sahney family's 50+ years of industry experience and the technical heritage of the NRB Group. This provides a durable advantage in client relationships and technical know-how, though it is currently offset by financial instability.

Macro Economic Sensitivity

Highly sensitive to industrial GDP and manufacturing output. Government spending on railways and metros is a key driver for the industrial bearings segment.

Consumer Behavior

Shift toward replacement segment demand requires higher inventory holding for industrial users to minimize machinery downtime.

Geopolitical Risks

Trade barriers or shifts in import policies regarding China significantly impact NIBL's competitive positioning as an import substitute.

⚖️ Regulatory & Governance

Industry Regulations

Subject to industrial manufacturing standards and quality certifications for bearings; also impacted by import duties and 'Make in India' regulatory frameworks.

⚠️ Risk Analysis

Key Uncertainties

Continued loss-making operations (INR 26.15 Cr loss in FY24) and the ability of promoters to continue infusing funds are the primary business uncertainties.

Geographic Concentration Risk

Significant concentration in Europe for exports (35% of total sales), making the company vulnerable to economic shifts in the Eurozone.

Third Party Dependencies

High dependency on the promoter group for liquidity; promoters provide interest-free loans and quasi-equity to sustain operations.

Technology Obsolescence Risk

Risk is moderate; bearings are essential mechanical components, but shifts toward different motion-control technologies could impact long-term demand.

Credit & Counterparty Risk

Liquidity is stretched with cash and equivalents declining from INR 5.84 Cr in 2022 to just INR 0.20 Cr in 2024, indicating severe pressure on meeting short-term obligations.