FAG Bearings India (a publicly-traded 51% owned subsidiary of INA Holding, Germany) reported financial results for fourth quarter and fiscal year 2008. Despite global economic pressures, the market in India has been relatively strong and resilient.

FAG India's sales are approximately 40% to the domestic auto industry, 15% rail, and the remaining 45% various industrial and semi-industrial applications. The company estimates India's total annual market for bearings stands around Rs 54 billion (USD $1.1 billion).

Fourth quarter sales were Rs 1.81 billion ($36.2 million), up 8% from Rs 1.68 billion in 2007. The sales figures suffer in context, however. Third quarter sales had been Rs 2.18 billion, up 35% from a similar base of Rs 1.62 billion sales in third quarter 2007.

Fourth quarter gross margin reached 19.5%, up from 2007's 17%, despite significantly higher costs for labor and raw materials. Raw materials rose to account for 55% of costs. Debt service costs are not a factor, however, as FAG India is debt-free.

After-tax profit for the quarter was Rs 214 million ($4.3 million), up more than 47% from 2007's Rs 145 million. helped by flat depreciation and a lower tax rate.

For the full year, FAG India reported net sales of Rs 7.44 billion ($149 million), from Rs 6.41 billion in 2007.

After-tax net profit for 2008 hit Rs 957.2 million ($19 million), from Rs 795.3 million in 2007.