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The eBearing News
August 16, 2006
FAG India Reports
First Quarter 2007 Results
copyright © 2006 eBearing Inc.
FAG Bearings India Ltd. (FBIL; BSE MIDCAP:
505790, a publicly-traded 51.3% owned subsidiary of INA Holdings, Germany)
reported results for first quarter fiscal 2007, ended June 30, 2006,
with exceptionally strong performance across the board.
Sales for the first quarter were Rs 1.36 billion (USD $29 million), up 43% from
2006's Rs 953.5 million ($20.5 million).
FAG India's operating margin also improved strongly, hitting 18% of sales, up 472 basis
points from 2006's already-strong 13.2% of sales.
Net profit climbed more than 54% in the quarter, hitting Rs 151.6 million ($3.3 million)
from 2006's Rs 98.3 million ($2.1 million).
That profitability level reflects the company's net profit margin increase of more
than 83 basis points over 2006, reaching 11.14% of sales from 10.3% of sales.
The company's results reflect the impact of both its investment strategy and India's
-- and the region's -- continued strong manufacturing growth.
FBIL is a key part of India's bearing industry, with more than 19% market share. In specific
markets, it holds much larger shares -- 50% of India's cylindrical and spherical
roller bearings, for example.
FAG India exports approximately 18% of production to other INA and FAG operations
worldwide, and the parent company in Germany is aggressively expanding that side of its
business to take advantage of India's cost advantage.
In India, FBIL sells primarily to OEM customers, and the OEM auto industry accounts for close
to 50% of its sales. Automotive and industrial customers include ABB, Bajaj Auto,
Crompton Greaves, Indian Railways, Maruti Udyog, Ford, General Motors, Hyundai, Ashok
Leyland, Siemens, and Punjab Tractors.
The quarter's results are the first reported under newly-appointed
Managing Director Biswarup Dhar. He replaced departing
Managing Director D. Jagannath as of May 26, 2006.
Although FBIL's share price took a tumble in mid-May, after hitting a 52-week high
of Rs 775, it has since recovered to Rs 520. One year ago, it was sitting at its
52-week low of only Rs 230.
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- by Bruce A. Carr
from individual research,
tips and commercial sources.
Bruce Carr edited this content.
Copyrighted material; unauthorized reproduction prohibited.
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eBearing.com ... for everything that moves™
Entire contents Copyright © 1999-2011, eBearing Inc. All rights reserved.
eBearing.com and "... for everything that moves" are registered trademarks of eBearing Inc.
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