Outcome of Board Meeting held on May 14, 2025
NRBBEARING · price
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NRB Bearings' board approved audited standalone and consolidated financial results for Q4 and FY ended March 31, 2025. Statutory auditors Walker Chandiok & Co LLP issued an unmodified (clean) opinion on both sets of results. The board recommended a final dividend of Rs. 4.30 per share (215%) on the Rs. 2 face value, subject to shareholder approval at the upcoming AGM. An interim dividend of Rs. 2.50 per share (125%) was already paid in October 2024, taking total FY25 dividend to Rs. 6.80 per share versus Nil in FY24. Standalone total equity rose to Rs. 87,898 lakhs from Rs. 84,651 lakhs, while total assets slipped to Rs. 1,10,279 lakhs. Operating cash flow stayed healthy at Rs. 8,660 lakhs. The results include a Rs. 5,512 lakhs exceptional loss from an inter-company payment to related party NRB Industrial Bearings Ltd (NIBL) under a Jan 2025 agreement, partially offset by a Rs. 750 lakhs insurance claim receipt.
A clean audit opinion, strong dividend payout (340% total for FY25 vs. Nil last year), and positive operating cash flow are positive for shareholders. However, core earnings were weighed down by the Rs. 5,512 lakhs one-time payment to a related party, and pending FEMA regularization on old overseas receivables/payables carries a potential (unascertained) penalty risk. The dividend yield support is likely to cushion the stock, though investors should watch core operating performance closely given last year's outsized gains from property sale distorted comparability.