Smooth Driving
ZAVERI IS STEERING THE COMPANY THROUGH ONE OF THE WORST RECESSIONS TO HAVE HIT THE AUTO SECTOR.
Harshbeena Sahney Zaveri believes in planning for the long term. That is why she is not unduly worried about the immediate future of the company in spite of the fact that the auto sector, its major customer, is in dire straits. “Recession also throws up opportunities and we are ready with the plans if the demand for vehicles does not pick up in the next 10-12 months”, she says. NRB, which makes 500-plus types of bearings for vehicles, has seen good growth in the past few years in terms of revenues and profitability.
In 2018/19, NRB reported 12.8 per cent year on year growth, driven by healthy rise in supplies to domestic original equipment manufacturers and exports, which grew 15 per cent and 20 per cent, respectively. Revenues grew from ` 674.9 crore in 2015/16 to ` 855.1 crore in 2017/18 and ` 964.9 crore in 2018/19. Net profit for 2018/19 was ` 108.2 crore. “We are focused on stronger financials and profits than aggressively increasing sales. Therefore, our financial parameters are well above that of the industry and on a par with international auto ancillary makers,” says Harshbeena Zaveri.
Analysts predict tough times ahead, at least for the next couple of years. “With growth moderation expected in 2019/20, we expect revenue, EBITDA and PAT to grow 9.8 per cent, 8.1 per cent and 4.3 per cent CAGR, respectively, between FY19
WE WILL LOOK AT SUPPLIES FOR RAILWAYS, INDUSTRIAL SOLUTIONS AND OTHER INFRA APPLICATIONS.”