Post on 23-Mar-2018
CRISIL IER Independent Equity Research
Enhancing investment decisions
NRB Bearings Ltd
Detailed Report
Explanation of CRISIL Fundamental and Valuation (CFV) matrix
The CFV Matrix (CRISIL Fundamental and Valuation Matrix) addresses the two important analysis of an investment making process – Analysis
of Fundamentals (addressed through Fundamental Grade) and Analysis of Returns (Valuation Grade) The fundamental grade is assigned on a
five-point scale from grade 5 (indicating Excellent fundamentals) to grade 1 (Poor fundamentals) The valuation grade is assigned on a five-
point scale from grade 5 (indicating strong upside from the current market price (CMP)) to grade 1 (strong downside from the CMP).
CRISIL
Fundamental Grade Assessment
CRISIL
Valuation Grade Assessment
5/5 Excellent fundamentals 5/5 Strong upside (>25% from CMP)
4/5 Superior fundamentals 4/5 Upside (10-25% from CMP)
3/5 Good fundamentals 3/5 Align (+-10% from CMP)
2/5 Moderate fundamentals 2/5 Downside (negative 10-25% from CMP)
1/5 Poor fundamentals 1/5 Strong downside (<-25% from CMP)
Research Analysts
Bhaskar Bukrediwala
bhaskar.bukrediwala@crisil.com
Ankit Kedia
Ankit.Kedia@crisil.com
Client servicing desk
+91 22 3342 3561
clientservicing@crisil.com
NRB Bearings Ltd
Fundamental Grade: 4/5 (Superior fundamentals) Valuation Grade: 5/5 (CMP has strong upside)
Industry: Auto Components Fair Value: ₹143 CMP: ₹107
December 30, 2016
For detailed initiating coverage report please visit: www.crisil.com
CRISIL Independent Equity Research reports are also available on Bloomberg (CRI <go>) and Thomson Reuters.
After a revival in growth in H1FY17, NRB Bearings Ltd (NRB) is poised to grow at a healthy
12.5% CAGR over the next two years, aided by strong growth in domestic automobile sales
and the company’s foray into new export markets. Auto production growth, which fell in FY16
(2% vs 8% in FY15), has picked up in H1FY17, and is expected to further accelerate due to a
revival in consumption-related spending, despite the adverse short-term impact of
demonetisation. Being an established player, NRB is well-placed to tap into this growth
potential. Within exports, fall in euro and delay in orders from clients in Europe resulted in a
11% fall in export revenues. With the company’s focus on diversifying into fast-growing
geographies and expanding its client base, we expect export growth to revive. We maintain
our fundamental grade of 4/5.
Robust domestic automobile growth to drive NRB’s OEM segment
Automobile production posted robust growth of 11.8% y-o-y in H1FY17 to 14 mn units. While
demonetization is likely to impact rural demand in the short run, normal monsoon and
sufficient reservoir levels across the country, are likely to aid growth over the next two-three
quarters. This is likely to translate into healthy demand for two-wheelers (which account for
48% of domestic OEM sales), tractors and light-commercial vehicles. With presence across
major automobile segments, and a diversified client base, NRB is expected to be a key
beneficiary. We expect its domestic OEM-led revenue to grow at a 13% CAGR over FY16-
FY19E.
Geographical diversification to aid export growth over FY16-FY19E
With the export revenue impacted by a weak euro, the company is looking to expand its
geographical presence, by focusing on fast-growing markets in South America, and to lower
its dependence on Europe. We believe these initiatives, coupled with a pick-up in orders from
the existing clients after the Volkswagen scandal, would help it register healthy growth in
exports. We forecast its export revenue to grow at a 10% CAGR over FY16-18E. However,
political uncertainty over Brexit and a slowdown in the key Eurozone economies remain
monitorables.
EBITDA margin to expand to 17.7% by FY18
A steep 200 bps rise in employee cost as a percentage of sales, coupled with partly idle
capacity due to a delayed offtake by a few export clients, led to a 210 bps contraction in
EBITDA margin in FY16. Going forward, the expected pick up in domestic and export
volumes is expected to result in margin expansion owing to operating leverage. We forecast
the EBITDA margin to expand 90 bps to 17.7% by FY18.
Valuations: We raise our fair value estimate to ₹143
We lower our FY17 and FY18 projections to factor in the near term impact of demonetisation.
However, we also lower our cost of equity assumption by 100 bps factoring in the fall in
interest rates and rolled forwarded valuation by one year to FY18. Consequently, we raise our
DCF-based fair value to ₹143. At the current market price of ₹107, the valuation grade is 5/5.
KEY FORECAST
(₹ mn) FY15 FY16 FY17E FY18E FY19E
Operating income 6,685 6,726 7,348 8,205 9,296
EBITDA 1,261 1,133 1,256 1,452 1,695
Adj net income 527 440 541 665 807
Adj EPS (₹) 5.4 4.5 5.6 6.9 8.3
EPS growth (%) 58.6 (16.5) 23.0 22.8 21.5
Dividend yield (%) 1.4 1.4 1.9 2.1 2.6
RoCE (%) 16.9 13.8 15.2 17.2 19.7
RoE (%) 22.0 16.3 18.0 19.6 21.0
P/E (x) 19.7 23.6 19.2 15.6 12.9
P/BV (x) 4.0 3.7 3.3 2.9 2.5
EV/EBITDA (x) 10.6 11.7 10.2 8.9 7.6
NM: Not meaningful; CMP: Current market price
Source: Company, CRISIL Research estimates
CFV MATRIX
KEY STOCK STATISTICS
NIFTY/SENSEX 8186/26626
NSE/BSE ticker NRBBEARING
Face value (₹ per share) 2
Shares outstanding (mn) 96.9
Market cap (₹ mn)/(US$ mn) 10,380/153
Enterprise value (₹ mn)/(US$ mn) 13,174/194
52-week range (₹)/(H/L) 148/100
Beta 1.0
Free float (%) 45.1%
Avg daily volumes (30-days) 11,156
Avg daily value (30-days) (₹ mn) 1.2
SHAREHOLDING PATTERN
PERFORMANCE VIS-À-VIS MARKET
Returns
1-m 3-m 6-m 12-m
NRB -4% -15% -8% -22%
NIFTY 500 -1% -6% 0% 4%
1 2 3 4 5
1
2
3
4
5
Valuation Grade
Fu
nd
am
en
tal G
rad
e
Poor
Fundamentals
Excellent
Fundamentals
Str
on
g
Do
wn
sid
e
Str
on
g
Up
sid
e
55.3% 55.1% 55.0% 54.9%
44.7% 44.9% 45.0% 45.1%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Dec-15 Mar-16 Jun-16 Sep-16
Promoter Public
2
Table 1: NRB Bearings Ltd - Business environment
Domestic (OEM) Exports Aftermarket
(replacement)
Revenue contribution –
FY16 ~66% ~21% ~13%
Revenue contribution -
FY19E ~69% ~20% ~11%
Sales CAGR (FY13-16) ~6% ~4% ~2%
Sales CAGR (FY16-19E) ~13% ~10% ~6%
Key products/ service
offering
● Big-end bearings
● Bush bearings
● Crank pins
● Cylindrical bearings
● Specialised ball bearings
● Steering column bearings
● Tapered roller bearings
● Rocker-arm bearings
● Needle and cylindrical bearings
● Planetary shafts
● Polyamide cages
● Rings and sleeves
● Specialised ball and tapered
roller bearings
● Ball bearings
● Big-end bearings
● Bush bearings
● Hub pins
Key customers
● Ashok Leyland Ltd
● Bajaj Auto Ltd
● Hero MotoCorp Ltd
● Honda Motorcycle & Scooters
India Ltd
● Mahindra and Mahindra Ltd
● Tata Motors Ltd
● Maruti-Suzuki
● Daimler Trucks
● Getrag Transmissions
Corporation (world’s largest
supplier of transmission systems
to passenger/commercial
vehicles)
● GKN Driveline (European
automotive and aerospace
player)
● Renault Volvo
● ZF Friedrichshafen AG
(Germany-based global leader
providing driveline technology to
auto OEMs)
● Sold through
dealers
Demand drivers
● Expected demand revival in
domestic auto sector
● Increased mining of existing
clients through product
development
● Client acquisition/entry into new
segments
● Increased mining of existing
customers through new product
development
● New client acquisitions
● Product launches
● Deeper
penetration and
wider range of
specialised
bearings
Key competitors ● Unlisted player in India - INA Bearings
● Listed players in India - SKF India, FAG Bearings and Timken India
Key risks
● Cyclicality in the automobile industry
● Foreign-currency risk
Source: Company, CRISIL Research
3
Fig 1: Revenue break-up, by market Fig 2: Revenue break-up, by product
Source: Company, CRISIL Research Source: Company, CRISIL Research
Domestic OEM, 66%
Domestic Aftermarket,
13%
Export, 21%2015-16
Needle roller bushes &
cages42%
Ball & roller bearings
38%
Automobile components
16%
Others4% 2015-16
4
Grading rationale
Robust growth in domestic automobile production, coupled
with an entry into new export markets, to drive growth
NRB is expected to be a key beneficiary of robust automobile growth, with 66% of its
revenue derived from the domestic OEM segment. After a lacklustre FY16, automobile
production posted a strong 11.8% y-o-y growth in H1FY17 to ~14 mn units, led by two-
wheelers (2W), passenger vehicles (cars and utility vehicles) and tractors. This trend is
likely to accelerate with the expected pick-up in consumption-related spending. With
presence across major automobile segments, and a diversified client base, NRB is well-
placed to tap into this growth potential.
Further, the company’s planned foray into fast-growing export markets and its focus on
diversifying the client base are expected to revive export growth over the next couple of
years. Based on these factors, we forecast revenue to grow at a 11.4% CAGR over FY16-
FY19E
Table 2: Outlook on key automobile segments
Segment Sales volume growth CAGR
Comments – Near-term growth prospects H1FY17 FY17E FY16-21E
Two-wheelers 18% 13-14% 6-8% Demonetisation to impact rural sales in H2FY17
Passenger
vehicles (PVs) 12% 9-11% 11-13% New launches to drive demand for PVs in H2FY17
Commercial
vehicles 6% 5-7% 9-11%
Slowing replacement demand to impact MHCV volume;
demonetisation to impact LCV and ICV demand during H2FY17
Tractors 20.3% 16-18% 9-11% Recovering reservoir levels and growth in Kharif sowing (up 6.5%)
to aid spending on tractors
E: Estimated
Source: CRISIL Research
Fall in exports and subdued domestic automobile production
impacted FY16 revenue
A steep fall of 11.4% y-o-y to ₹1,348 mn in exports, coupled with a slowdown across
automobile segments, led to a subdued FY16 for the company, with revenue flat at ₹6,726
mn. India’s automobile production grew at a tepid 2.3% in FY16, compared with 8% in
FY15. Consequently, NRB’s domestic OEM revenue growth slowed to 6.2%, compared
with 12.6% in 2014-15. This was also reflected in its peers’ revenues, with growth falling
below the FY15 levels.
5
Fig 3: Revenue growth flat (0.6%) in FY16 Fig 4: Fall in domestic auto production impacted revenue
*Peers include FAG Bearings India, Timken India and SKF India
Source: Company, CRISIL Research Source: Company, CRISIL Research
Table 3: Past growth in key automobile segments
y-o-y growth in production FY14 FY15 FY16
Two wheelers 7.2% 9.5% 1.8%
Passenger vehicles -4.5% 4.5% 5.5%
Commercial vehicles -16.0% -0.5% 12.6%
Tractors 22.3% -13.4% -6.9%
Total 4.6% 7.9% 2.3%
Source: CRISIL Research
Diversified client base helped in absorbing domestic slump to a
large extent; maintained market share among organized players
Despite tepid growth in automobile production (2.3%), the company was able to post
higher growth of 7.6%, due to a diversified client base across segments. This was mainly
because of higher-than-industry growth posted in the CV and tractor segments (despite a
10% y-o-y fall in tractor production), due to the company’s association with fast-growing
players in these segments. Consequently, the company retained its market share of 12%
in the domestic organised sector.
Domestic OEM segment to grow at a healthy 13% CAGR on
strong automobile demand
While demonetisation is likely to impact rural automobile demand in the short run, we
believe the impact is likely to moderate over the next two-three months. With the expected
pick-up in agricultural output amidst a normal monsoon and sufficient reservoir levels
across the country, revival in rural spending is on the anvil. This is likely to translate into
healthy demand for two-wheelers, tractors and, light and intermediate commercial vehicles.
Further, the implementation of the Seventh Pay Commission recommendations, coupled
with new model launches by auto majors, is expected to result in a healthy rise in PV sales
in the near term. With the presence across these fast-growing segments (2W – 48 % of
domestic sales, tractors – 11%, CVs - 26%, PVs - 15%), NRB is expected to post a 13%
CAGR in domestic OEM revenue over FY16-19E.
5,600 5,912
6,093
6,685
6,726
16.3
5.6
3.1
9.7
0.6
0
2
4
6
8
10
12
14
16
18
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
FY12 FY13 FY14 FY15 FY16
(%)(₹ mn)
Revenues % growth y-o-y
14.2
0.9
4.6 7.9
2.3
16.3
5.6
3.1
9.7
0.6
13.4
(3.2)
5.2
10.5
4.6
-5
0
5
10
15
20
FY12 FY13 FY14 FY15 FY16
(%)
Auto production NRB's revenue Peer revenue*
Maintained a 12% market share in
the domestic organised sector
Growth y-o-y
6
Fig 5: Domestic OEM revenues to grow 13% CAGR over FY16-19E
Source: Company, CRISIL Research
Order delays and lower euro exchange rate impacted exports;
expect foray into new markets to drive growth in FY16-19E
After a period of robust growth (~40% CAGR over FY11-15), NRB’s exports fell 11% in
FY16, because of a slowdown in orders and a fall in Euro-INR exchange rate. As direct
fallout of stagnant growth in developed economies and decelerating growth in key markets,
the company faced slowing orders from its major clients in the European region, including
Renault, Volvo, Daimler Trucks and Audi. Also, major global OEMs were circumspect
about onboarding new suppliers and were reviewing their current procurement policies in
the wake of emission-related violations by Volkswagen. Consequently, the company was
unable to onboard new customers during H2FY16. This also resulted in cost implications,
since a part of the production capacity remained idle, owing to commitments and delayed
offtake by clients. Further, a 6.7% fall in EUR-INR to 72.7 ₹/Euro in FY16, added to the
decline, as a major portion of its export revenue is from Europe.
Management indicated that it plans to expand the company’s geographical presence as
well client base to avoid dependence on Europe. It is looking to make further inroads in the
Americas, in countries which have a fast-growing auto-components industry. We believe,
these initiatives would help NRB diversify its export client base and markets. However, with
Europe currently contributing a major part of its exports, political uncertainty over Brexit
and a slowdown in the key Eurozone economies may impact growth and are thus key
monitorables. We forecast export revenue to grow at 10% CAGR over FY16-19E.
4,042
4,348 4,831 5,477 6,276
9.9%
7.6%
11.1%
13.4%
14.6%
0%
2%
4%
6%
8%
10%
12%
14%
16%
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
FY15 FY16 FY17E FY18E FY19E
(%)(₹ mn)
Domestic OEM revenues y-o-y growth (RHS)
7
Fig 6: Euro-INR movement impacted FY16 exports Fig 7: Expect exports to pick up in FY17
Source: RBI, CRISIL Research Source: Company, CRISIL Research
Aftermarket segment growth remains tepid; New initiatives to
yield results only in the long run
NRB’s aftermarket growth has been steady albeit a tepid 3% CAGR over FY11-16. The
segment’s contribution to overall sales declined to 12-13% in FY16 from 18% in FY11. The
company largely caters to the price-sensitive two- and three-wheeler segments, where it
faces stiff competition from several organised players, such as SKF Bearings, FAG
Bearings, Timken India and INA Bearings, in addition to cheaper Chinese imports.
To improve its aftermarket sales, the company is planning to launch a new branding
campaign, with improved packaging and focus on tier-III and rural markets. It also plans to
foray into the tractor segment, which has a relatively shorter bearing-replacement cycle.
However, we expect these initiatives to help NRB gain ground in the long run, given the
high competitive intensity. We expect the company to make gradual inroads into the
segment over the next three years, with revenue growing at a 5.7% CAGR over FY16-19E.
Fig 8: Aftermarket revenue to grow at a 6% CAGR over FY16-19E
Source: Company, CRISIL Research
60
65
70
75
80
85
90
Ja
n-1
4
Mar-
14
Ma
y-1
4
Ju
l-14
Sep
-14
No
v-1
4
Ja
n-1
5
Mar-
15
Ma
y-1
5
Ju
l-15
Sep
-15
No
v-1
5
Ja
n-1
6
Mar-
16
(₹/Eur)
Eur-Inr exchange rate
1,548 1,378 1,488 1,637 1,834
14.0%
-11.0%
8.0%10.0%
12.0%
-15%
-10%
-5%
0%
5%
10%
15%
20%
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
FY15 FY16 FY17E FY18E FY19E
(₹ mn)
Export revenues y-o-y growth (RHS)
835
847
881
925 999
6.3%
1.4%
4.0%
5.0%
8.0%
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
750
800
850
900
950
1,000
1,050
FY15 FY16 FY17E FY18E FY19E
(%)(₹ mn)
Aftermarket revenues y-o-y growth (RHS)
8
R&D focus helps maintain the competitive edge
The company’s focus on research and development (R&D) through investments in
technology has enabled it to onboard several large automobile manufacturers as clients. It
is a tier-1 supplier to domestic OEMs, such as Hero MotoCorp, Bajaj Auto, Eicher Motors,
Tata Motors, Maruti Suzuki and Ashok Leyland and tier-I/tier-II supplier to global majors,
such as Renault Volvo, ZF group, Daimler Trucks and the Getrag group. Because of to the
customised nature of its products, many clients engage the company right from the product
conceptualisation stage. This has helped the company developed sticky relationships with
clients. Further, the company’s strategic focus on the needle-roller bearing has helped it
maintain leadership in the segment (~70% market share). NRB spent ₹81 mn on R&D
during FY16.
New product forays yet to bear fruit
The company is planning to directly cater to defense and railway-related projects. It has
earlier won an order from Defense Research and Development Organisation (DRDO) and
developed a working relationship with the Indian Railways as a tier-II supplier. However,
these initiatives have not yet resulted in significant orders for the company.
Operating margin expected to rise to 18.2% by FY19E
A sharp rise in employee cost – up 200 bps to 18.8% as a percentage of sales – because
of higher provisioning for gratuity and bonus, coupled with partly idle capacity due to
delayed offtake by a few export clients, led to a 210 bps contraction in EBITDA margin to
16.8% in FY16. The expected pick-up in domestic and export volumes is expected to result
in margin expansion due to operating leverage. We forecast EBITDA margin to expand
140 bps to 18.2% by FY19E.
Fig 9: Movement in EBITDA margin and revenue growth Fig 10: EBITDA margin expected to expand 140 bps
Source: Company, CRISIL Research Source: Company, CRISIL Research
18.8
14.3
10.3
(0.9)
2.1
(4.6)
(4.6)
10.4 9.2
6.9
26.5
18.6 18.3
13.8 14.5
18.3
12.8
17.9 16.8
15.8
10
12
14
16
18
20
22
24
26
28
-10
-5
0
5
10
15
20
Q1F
Y15
Q2
FY
15
Q3
FY
15
Q4
FY
15
Q1
FY
16
Q2
FY
16
Q3
FY
16
Q4
FY
16
Q1F
Y17
Q2
FY
17
(%)(%)
Revenue growth y-o-y EBITDA margin (RHS)
1,261 1,133 1,256 1,452 1,695
18.9%
16.8%17.1%
17.7%
18.2%
15.5%
16.0%
16.5%
17.0%
17.5%
18.0%
18.5%
19.0%
19.5%
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
FY15 FY16 FY17E FY18E FY19E
(₹ mn)
EBITDA EBITDA margin (RHS)
Maintained focus on R&D
Source: Company, CRISIL Research
50 59 70 72 81
0.9%
1.0%
1.2%1.1%
1.2%
0.0%
0.2%
0.4%
0.6%
0.8%
1.0%
1.2%
1.4%
0
10
20
30
40
50
60
70
80
90
FY12 FY13 FY14 FY15 FY16
(₹ mn)
R&D expense (P&L) As a % sales
9
Better operating margin versus peers, but longer working
capital cycle leads to moderate ROCE
NRB’s operating margin (18.4% - average of last five years) is higher than its peers, due to
its better product mix, comprising higher-margin customised products (45% of sales are
from needle-roller bearings), and integrated manufacturing, compared with off-the-shelf
products and trading operations of its peers. However, its products are manufactured in
lower volume due to their specialised nature, with a requirement to maintain a minimum
amount of inventory across its range of stock keep units (SKUs). With a large product
range of more than 500 type of bearings, (SKF in comparison has ~150), this leads to
higher inventory days compared to peers. Consequently, the company has a longer
working capital cycle resulting in moderate ROCE compared with peers. However, due to a
more efficient capital mix, the company generates higher ROE.
Fig 11: EBITDA margin higher than peers, however… Fig 12: …stretched working capital cycle due to high
inventory…
Note: SKF, Timken and FAG Bearings India have trading sales, Margin calculated by taking average previous five reporting periods
Note: Average working capital days of previous five reporting periods
Source: Company, CRISIL Research Source: Company, CRISIL Research
Fig 13: …leads to moderate ROCE Fig 14: ROE is higher due to an efficient capital mix
Note: Average RoCE of previous five reporting periods
Source: Company, CRISIL Research
Note: Average RoE of previous five reporting periods
Source: Company, CRISIL Research
17.2%
12.3%
12.8%
18.4%
0% 5% 10% 15% 20%
FAG Bearings
SKF India
Timken India
NRB Bearings
FAG Bearings SKF India Timken India NRB Bearings
74
66
92
136
0 20 40 60 80 100 120 140 160
FAG Bearings
SKF India
Timken India
NRB Bearings
FAG Bearings SKF India Timken India NRB Bearings
24.4%
21.5%
23.8%
16.4%
0% 5% 10% 15% 20% 25% 30%
FAG Bearings
SKF India
Timken India
NRB Bearings
FAG Bearings SKF India Timken India NRB Bearings
19.2%
17.5%
17.9%
19.5%
16.5% 17.0% 17.5% 18.0% 18.5% 19.0% 19.5% 20.0%
FAG Bearings
SKF India
Timken India
NRB Bearings
FAG Bearings SKF India Timken India NRB Bearings
10
Key risks
Dependence on domestic OEMs; cyclicality of the industry
NRB derives 66% of revenue from the domestic auto industry, which is cyclical. However,
its presence across various sub-sectors (such as two-wheelers, three-wheelers, four
wheelers and commercial vehicles) mitigates this risk. Though we expect growth in the
auto industry to pick up in H2FY17, a delay could have a negative impact.
Foreign-currency volatility
The company is exposed to foreign-currency volatility through debt and exports (21% of
revenue). Although exports provide a natural hedge to its foreign-currency borrowings, the
risk associated with volatile currency movements persists.
Volatility in raw material prices
Passing on higher raw material costs - an industry-wide phenomenon - to customers is a
challenge. For instance, the company’s inability to pass on the sharp increase in raw
material cost (steel and oil) entirely to its customers led to low profitability in FY09.
11
Financial outlook
Revenue to record a 11% CAGR to ₹9.3 bn during FY16-19E
We estimate revenue to grow at 11.4% CAGR over FY16-19E. Driven by higher demand in
the key automobile segments (such as two-wheelers, tractors and CVs) over the period,
domestic OEM revenue is expected to grow at a 13% CAGR. Exports are expected to
grow at a healthy two-year CAGR of 10%, aided by client addition across geographies.
Fig 15: Revenue to grow at a three-year CAGR of 11% Fig 16: Revenue mix
Source: Company, CRISIL Research Source: Company, CRISIL Research
EBITDA margin to expand to 18.2% by FY19E
We expect the operating margin to expand 140 bps to 18.2% over the next three years due
to operating leverage benefits stemming from higher volume.
Fig 17: EBITDA margin expansion on the cards
Source: Company, CRISIL Research
6,685 6,726
7,348
8,205 9,296
9.7
0.6
9.3
11.7
13.3
0
2
4
6
8
10
12
14
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
FY15 FY16 FY17E FY18E FY19E
(%)(₹ mn)
Revenues % Growth y-o-y (RHS)
63% 67% 67% 68% 69%
13%13% 12% 12% 11%
24% 21% 21% 20% 20%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
FY15 FY16 FY17E FY18E FY19E
Domestic After market Exports
1,261 1,133 1,256 1,452 1,695
18.9%
16.8%17.1%
17.7%
18.2%
15.5%
16.0%
16.5%
17.0%
17.5%
18.0%
18.5%
19.0%
19.5%
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
FY15 FY16 FY17E FY18E FY19E
(₹ mn)
EBITDA EBITDA margin (RHS)
Revenue: To grow at 11% CAGR
during FY16-19E
12
PAT to record a CAGR of 22% over FY16-19E
We estimate profit after tax (PAT) to grow at a 22.4% CAGR over FY16-19E to ₹807 mn.
As a result, ROE and ROCE are expected to improve to 21.0% and 19.7% by FY19E from
16.2% and 13.8% in FY16, respectively.
Fig 18: PAT margin to rise over FY16-19E Fig 19: Return ratios to improve
Source: Company, CRISIL Research Source: Company, CRISIL Research
527 440 541 665 807
7.9
6.5
7.4
8.18.7
0
1
2
3
4
5
6
7
8
9
10
0
100
200
300
400
500
600
700
800
900
FY15 FY16 FY17E FY18E FY19E
(%)(₹ mn)
Adj. PAT Adj. PAT margin (RHS)
22.0
16.3
18.019.6
21.0
16.9
13.815.2
17.2
19.7
0
5
10
15
20
25
FY15 FY16 FY17E FY18E FY19E
(%)
RoE RoCE
13
Q2FY17 Results Summary
NRB’s Q2FY17 revenue grew 6.9% y-o-y (lower than our expectations) to ₹1,797 mn.
EBITDA margin contracted by 256 bps y-o-y to 15.8%, owing to higher other expenses as
a percentage of sales (up 338 bps y-o-y). Owing to lower EBITDA, adjusted PAT declined
8.1% y-o-y to ₹164 mn.
Margin declined on account of forex related loss
EBITDA margin contracted by 256 bps y-o-y owing to steep rise in other expenses (up
31% y-o-y). This was mainly because of forex related loss of ₹11mn during Q2FY17,
compared to a forex gain of ₹33 mn in Q2FY16. Higher depreciation and interest expense
(up 15.2% and 11% y-o-y), were offset by higher other income (up 123.6% y-o-y).
Resultantly, adjusted PAT fell 8.1% y-o-y to ₹164 mn, in line with fall in EBITDA.
Q2FY17 Results (Standalone)
(₹ mn) Q2FY17 Q1FY17 Q2FY16 q-o-q (%) y-o-y (%) H1FY17 H1FY16 y-o-y (%)
Net sales 1,797 1,746 1,681 2.9 6.9 3,543 3,281 8.0
Raw Material Cost 905 880 843 2.8 7.4 1,785 1,656 7.8
Raw Material as % of sales 50.4% 50.4% 50.1% -3 bps 22 bps 50.4% 50.5% -12 bps
Other expenses 335 284 257 18.1 30.5 619 544 13.9
Employees Cost 273 289 273 (5.5) 0.1 562 540 4.1
EBITDA 283 293 308 (3.4) (8.0) 577 540 6.8
EBITDA margin 15.8% 16.8% 18.3% -103 bps -256 bps 16.3% 16.5% -18 bps
Depreciation 73 74 64 (1.3) 15.2 148 124 19.0
EBIT 210 219 245 (4.1) (14.1) 429 416 3.1
Interest and finance charges 37 32 34 16.1 11.0 70 67 3.9
Operating PBT 173 187 211 (7.6) (18.1) 359 349 3.0
Other Income 58 14 26 327.4 123.6 71 37 91.9
Extraordinary Income/(expense) - - (21) NM NM - (21) NM
PBT 230 200 215 15.0 6.9 431 365 18.0
Tax 67 59 59 12.5 13.8 126 103 22.7
PAT 164 141 157 16.0 4.3 305 262 16.2
Adj PAT 164 141 178 16.0 (8.1) 305 283 7.5
Adj PAT margin 9.1% 8.1% 10.6% 103 bps -148 bps 8.6% 8.6% -4 bps
No of equity shares (mn) 96.9 96.9 96.9 - - 96.9 96.9 -
Adj EPS (₹) 1.7 1.5 1.8 16.0 (8.1) 3.1 2.9 7.5
Source: Company, CRISIL Research
14
Management Overview
CRISIL's fundamental grading methodology includes a broad assessment of management
quality, apart from other key factors, such as industry and business prospects, and
financial performance. The board is broad-based; its members have multi-disciplinary
experience, which aids decision-making.
Experienced management
Trilochan Singh Sahney, Executive Chairman, is the founder-promoter of NRB. He has
handed over the operational management to his daughter Harshbeena Zaveri, currently
Managing Director and President. She has almost 26 years of experience in the bearings
industry and spearheaded the company’s foray into design engineering. Under her
leadership, the company set up an R&D centre and increased export sales by tapping
leading global automobile OEMs.
Strong focus on in-house R&D
NRB set up an in-house R&D centre in 2000. This has enabled the company position itself
as a supplier of high-end/critical applications to domestic and global OEMs, offering a wide
product range. Being a preferred supplier also means that NRB is the first port of call, as
global OEMs expand their footprint in India. The company also has a material sciences
R&D centre in Waluj.
Strong second line of management
The company has inducted various professionals at senior and middle-management levels,
who have significant experience in the bearings industry.
● Tanushree Bagrodia, CFO, is an INSEAD MBA graduate with a substantial
experience in investment banking.
● Sanjeev Parida, Senior Vice President, heads the human resources,
business systems and process functions. He more than 20 years of
experience and has previously worked at Tech Machindra,
● Mr Hemant Jog, Vice President, Manufacturing. He holds a Bachelor’s
degree in Mechanical Engineering and a Post Graduate Diploma in
Materials Management. He has 28 years of experience in the bearings
industry.
● Mr Gagan Mathur, Vice President, Sales and Marketing, has more than 15
years of experience in the engineering and components industry.
15
Corporate Governance
CRISIL’s fundamental grading methodology includes a broad assessment of corporate
governance and management quality, apart from other key factors such as industry and
business prospects, and financial performance. In this context, CRISIL Research analyses
the shareholding structure, board composition, typical board processes, disclosure
standards and related-party transactions. Any qualifications by regulators or auditors also
serve as useful inputs, while assessing a company’s corporate governance.
NRB’s corporate governance is good. It is supported by a strong board and efficient
practices. It adheres to all regulatory requirements.
Board composition complies with the listing norms
The board comprises eight members, of whom one is an executive chairman and four are
independent directors, thereby meeting the requirements under Clause 49 of the SEBI’s
listing guidelines. The independent directors are highly qualified, have strong industry
experience.
Board processes
Necessary committees – such as audit, stakeholders’ relationships and nominations, and
remuneration - are in place, headed by independent directors. These committees have a
wider scope and, hence, the decision-making process is collaborative and appropriate.
Quality of earnings and disclosure standards
Quality of earnings is good as reflected in the following:
− Accounting policies are appropriate and conservative.
− The company has been generating operating cash flow over the past few years,
in line with revenue growth.
− High debtor and inventory days, due to the high inventory required by the
customised nature of its business.
The company has maintained a healthy dividend payout ratio of 33% on an average
over the past five years. Compared with PAT growth, the dividend payout is
appropriate and, hence, benefits the minority shareholders.
Based on public information, including annual reports and website uploads, the
disclosure standards are satisfactory. Although the company does not hold an investor
conference call (after the quarterly results), it shares information regularly.
16
Valuation Grade: 5/5
We lower our FY17 and FY18 projections to factor in the near term impact of
demonetisation on auto demand. However, we also lower our cost of equity assumption by
100 bps factoring in the fall in interest rates and rolled forwarded valuation by one year to
FY18. Consequently, we raise our DCF-based fair value to ₹143. The fair value implies
15.6x FY18E and 12.9x FY19E EPS. At the current market price of ₹107, the valuation
grade is 5/5.
Key DCF assumptions
Discounted value of the firm’s estimated free cash flows from FY17 to FY27.
Cost of equity of 14.6%.
Terminal growth rate of 3% beyond the explicit forecast period until FY27.
WACC computation
FY18-27 Terminal value
Cost of equity 14.6% 14.6%
Cost of debt (post tax) 4.2% 4.2%
WACC 9.0% 9.0%
Terminal growth rate 3%
One-year forward P/B band One-year forward EV/EBITDA band
Source: NSE, CRISIL Research Source: NSE, CRISIL Research
0
50
100
150
200
250
Ju
n-0
9
No
v-0
9
Apr-
10
Sep
-10
Feb
-11
Ju
l-11
De
c-1
1
May-1
2
Oct-
12
Mar-
13
Aug
-13
Ja
n-1
4
Ju
n-1
4
No
v-1
4
Apr-
15
Sep
-15
Feb
-16
Ju
l-16
De
c-1
6
(₹)
NRB 6x 12x
18x 24x 30x
0
5,000
10,000
15,000
20,000
25,000
Ju
n-0
9
No
v-0
9
Apr-
10
Sep
-10
Feb
-11
Ju
l-11
De
c-1
1
May-1
2
Oct-
12
Mar-
13
Aug
-13
Ja
n-1
4
Ju
n-1
4
No
v-1
4
Apr-
15
Sep
-15
Feb
-16
Ju
l-16
De
c-1
6
(₹ mn)
EV 4x 8x 12x 16x
Fair value rose to ₹143
17
P/E – premium / discount to CNX 500 P/E movement
Source: NSE, CRISIL Research Source: NSE, CRISIL Research
Peer valuation comparison – consensus estimates
Company Currency M.Cap P/E P/B EV/EBITDA ROE (%)
FY16 FY17E FY18E FY16 FY17E FY18E FY16 FY17E FY18E FY16 FY17E FY18E
NRB Bearings Ltd* ₹ bn 10 23.6 19.2 15.6 3.7 3.3 2.9 11.7 10.2 8.9 16.3 18.0 19.6
Bearings Manufacturers
Domestic
Fag Bearings India# ₹ bn 70 35.6 34.1 29.0 5.5 4.9 4.3 21.3 20.7 17.7 16.5 15.7 15.7
SKF India# ₹ bn 76 36.7 29.9 25.2 4.7 4.4 3.9 25.6 20.4 17.4 13.6 15.3 16.3
Timken India ₹ bn 38 41.0 33.5 27.6 7.2 6.2 5.3 22.8 19.4 16.0 19.1 19.5 20.3
Average
37.8 32.5 27.3 5.8 5.1 4.5 23.2 20.2 17.0 16.4 16.9 17.4
Median
36.7 33.5 27.6 5.5 4.9 4.3 22.8 20.4 17.4 16.5 15.7 16.3
Global
Timken# US$ bn 2 -38.0 16.6 15.9 1.9 - - 147.8 8.0 7.9 -4.9 11.7 -
SKF# US$ bn 66 17.0 14.8 13.0 2.7 2.6 2.4 7.5 8.1 7.7 16.2 17.0 18.4
* CRISIL Research estimates, # companies with year ending Dec - FY15 actual, FY16 and FY17 are estimates
Source: Industry, CRISIL Research; * CRISIL Research estimates
-80%
-60%
-40%
-20%
0%
20%
40%
60%
Ju
n-0
9
No
v-0
9
Apr-
10
Sep
-10
Feb
-11
Ju
l-11
De
c-1
1
May-1
2
Oct-
12
Mar-
13
Aug
-13
Ja
n-1
4
Ju
n-1
4
No
v-1
4
Apr-
15
Sep
-15
Feb
-16
Ju
l-16
De
c-1
6
Premium/Discount to CNX 500
Median premium/discount to CNX 500
0
5
10
15
20
25
30
35
Ju
n-0
9
No
v-0
9
Apr-
10
Sep
-10
Feb
-11
Ju
l-11
De
c-1
1
May-1
2
Oct-
12
Mar-
13
Aug
-13
Ja
n-1
4
Ju
n-1
4
No
v-1
4
Apr-
15
Sep
-15
Feb
-16
Ju
l-16
De
c-1
6
(Times)
1yr Fwd PE (x) Median PE
+1 std dev
-1 std dev
18
Auto Component sector valuation comparison – consensus estimates
Company Currency M.Cap P/E P/B EV/EBITDA ROE
FY15 FY16E FY17E FY15 FY16E FY17E FY15 FY16E FY17E FY15 FY16E FY17E
Auto Component Manufacturers
Domestic
Motherson Sumi
Systems ₹ bn 424 31.3 24.7 19.0 9.4 7.2 5.6 12.5 11.0 8.9 33.7 32.3 33.2
Setco Automotive ₹ bn 6 4.6 14.4 13.0 0.5 2.2 1.9 12.3 9.4 8.5 11.1 15.7 15.9
Sundram Fasteners ₹ bn 38 31.7 24.6 20.5 6.6 5.3 4.3 18.9 15.2 13.2 22.5 22.3 22.9
Munjal Showa ₹ bn 8 14.3 12.0 10.4 1.9 1.7 1.5 6.4 5.8 5.1 14.2 15.2 15.5
Average
20.5 18.9 15.7 4.6 4.1 3.3 12.5 10.3 8.9 20.4 21.4 21.9
Median
14.3 10.2 6.2 1.9 1.6 1.1 9.4 7.7 5.9 18.6 18.9 20.2
Global
Delphi Automotive
PLC# US$ bn 22 13.0 11.0 10.1 8.2 6.0 4.5 9.7 7.7 7.2 60.9 61.0 49.5
Denso Corp JPY bn 5,315 14.4 16.1 14.2 1.1 1.1 1.0 5.6 5.8 5.4 7.6 6.9 7.6
Valeo SA# EUR bn 9 16.0 13.4 11.6 3.4 3.0 2.5 7.4 6.1 5.4 23.5 23.0 22.6
Average
14.5 13.5 12.0 4.2 3.4 2.7 7.6 6.5 6.0 30.7 30.3 26.6
Median
13.7 12.1 10.6 2.7 2.3 2.0 6.0 5.9 5.4 21.3 20.8 19.8
# Companies with year ending Dec - FY15 actual, FY16 and FY17 are estimates
Source: Industry, CRISIL Research
19
CRISIL IER reports released on NRB Bearings Ltd
Date Nature of report
Fundamental
grade Fair value
Valuation
grade
CMP
(on the date of report)
02-Jan-2014 Detailed report 4/5 ₹46 5/5 ₹36
07-Feb-2014 Q3FY14 result update 4/5 ₹46 4/5 ₹38
02-Jun-2014 Q4FY14 result update 4/5 ₹65 2/5 ₹85
01-Sep-2014 Q1FY15 result update 4/5 ₹104 3/5 ₹110
26-Dec-2014 Q2FY15 result update 4/5 ₹127 3/5 ₹123
30-Dec-2015 Detailed report 4/5 ₹127 3/5 ₹138
07-Apr-2016 Q3FY16 result update 4/5 ₹135 3/5 ₹130
28-Jun-2016 Q4FY16 result update 4/5 ₹135 4/5 ₹114
21-Sep-2016 Q1FY17 result update 4/5 ₹135 3/5 ₹131
30-Dec-2016 Detailed report 4/5 ₹143 5/5 ₹107
Share price movement Fair value movement since initiation
Source: NSE, CRISIL Research Source: NSE, CRISIL Research
0
50
100
150
200
250
300
350
400
450
Ja
n-1
4
Mar-
14
May-1
4
Ju
l-14
Sep
-14
De
c-1
4
Feb
-15
Apr-
15
Ju
n-1
5
Aug
-15
No
v-1
5
Ja
n-1
6
Mar-
16
May-1
6
Ju
l-16
Oct-
16
De
c-1
6
(₹ mn)
NRB Bearings Nifty 500
0
500
1,000
1,500
2,000
2,500
3,000
0
20
40
60
80
100
120
140
160
180Ja
n-1
4
Mar-
14
May-1
4
Ju
l-14
Sep
-14
De
c-1
4
Feb
-15
Apr-
15
Ju
n-1
5
Aug
-15
No
v-1
5
Ja
n-1
6
Mar-
16
May-1
6
Ju
l-16
Oct-
16
De
c-1
6
('000)(₹)
Total Traded Quantity (RHS) CRISIL Fair Value
NRB Bearings
20
Company Overview
NRB was incorporated in 1965 as Needle Roller Bearing Company Ltd. It was set up as a
joint venture (30% stake) with French needle bearings manufacturer, Nadella SA (later
acquired by Timken France), which provided technological support. In 2005, NRB
promoters bought Timken’s stake.
The company has eight manufacturing plants in Waluj, Jalna, Chikalthana (Aurangabad)
and Thane (Maharashtra), Pantnagar (Uttarakhand), Hyderabad (Andhra Pradesh), Ranchi
(Jharkhand) and Rayong (Thailand). Waluj and Jalna plants constitute more than 80% of
the company’s bearings production.
NRB has three subsidiaries: SNL Bearings Ltd (73.7% stake), and wholly owned
subsidiaries, NRB Bearings (Thailand) Ltd and NRB Bearings Europe GmbH. In October
2012, NRB demerged its industrial bearings division into a wholly owned subsidiary, NRB
Industrial Bearings Ltd.
Key milestones
1965 ● Incorporated in Mumbai as Needle Roller Bearing Company; an Indo-French joint venture with Nadella – France
(Timken)
1966 ● Set up the first plant in Thane, Mumbai, to produce needle-roller bearings
1980 ● New plant set up in Chikalthana, Aurangabad, for needle rollers
1982 ● New plant set up in Jalna, Aurangabad, to produce cylindrical roller bearings, ball bearings, spherical roller
bearings, tapered roller bearings
1990 ● Name changed to NRB Bearings
1991 ● New plant set up in Waluj, Aurangabad
1995 ● Listed on the BSE
2000 ● Listed on the NSE
● Acquired Shriram Needle Bearings Industries Ltd (SNL)
● Set up an R&D centre in the Thane plant
2005 ● Promoters of NRB Bearings bought Timken’s stake
2008 ● NRB established a wholly owned subsidiary NRB Bearings Thailand Ltd
● New plant set up in Pantnagar, Uttarakhand
2012 ● Demerged NRB Industrial Bearings as a part of a family settlement
2015 ● NRB Bearings Europe GmbH was set up with a view to increase exports to Europe
Source: Company
Top fourth largest bearing
company in India (organised), in
terms of sales
It has a product range of over
3,000 different sizes of bearings
21
Annexure: Financials
Source: CRISIL Research
Income statement Balance Sheet
(₹ mn) FY15 FY16 FY17E FY18E FY19E (₹ mn) FY15 FY16 FY17E FY18E FY19E
Operating income 6,685 6,726 7,348 8,205 9,296 Liabilities
EBITDA 1,261 1,133 1,256 1,452 1,695 Equity share capital 194 194 194 194 194
EBITDA margin 18.9% 16.8% 17.1% 17.7% 18.2% Reserves 2,353 2,614 2,969 3,368 3,852
Depreciation 310 319 336 357 384 Minorities 24 24 30 37 45
EBIT 951 813 920 1,095 1,311 Net worth 2,571 2,832 3,193 3,598 4,091
Interest 194 185 146 141 133 Convertible debt - - - - -
Operating PBT 757 629 774 954 1,178 Other debt 3,273 3,107 3,007 2,907 2,707
Other income 45 26 39 44 37 Total debt 3,273 3,107 3,007 2,907 2,707
Exceptional inc/(exp) (2) (13) 49 - - Deferred tax liability (net) 120 117 117 117 117
PBT 800 641 862 997 1,215 Total liabilities 5,964 6,056 6,317 6,622 6,915
Tax provision 263 210 266 326 400 Assets
Minority interest 12 5 6 7 8 Net f ixed assets 2,569 2,581 2,533 2,651 2,762
PAT (Reported) 525 427 591 665 807 Capital WIP 203 121 71 46 21
Less: Exceptionals (2) (13) 49 - - Total fixed assets 2,772 2,701 2,604 2,697 2,782
Adjusted PAT 527 440 541 665 807 Investments 2 8 8 8 8
Current assets
Ratios Inventory 1,642 1,447 1,812 2,001 2,190
FY15 FY16 FY17E FY18E FY19E Sundry debtors 2,120 2,284 2,374 2,579 2,868
Growth Loans and advances 2,037 2,222 2,239 2,500 2,833
Operating income (%) 9.7 0.6 9.3 11.7 13.3 Cash & bank balance 278 313 545 468 321
EBITDA (%) 17.3 (10.2) 10.9 15.6 16.7 Marketable securities 1 1 1 1 1
Adj PAT (%) 58.6 (16.5) 23.0 22.8 21.5 Total current assets 6,078 6,266 6,970 7,548 8,212
Adj EPS (%) 58.6 (16.5) 23.0 22.8 21.5 Total current liabilities 2,901 2,933 3,279 3,644 4,101
Net current assets 3,177 3,334 3,691 3,904 4,111
Profitability Intangibles/Misc. expenditure 14 14 14 14 14
EBITDA margin (%) 18.9 16.8 17.1 17.7 18.2 Total assets 5,964 6,056 6,317 6,622 6,915
Adj PAT Margin (%) 7.9 6.5 7.4 8.1 8.7
RoE (%) 22.0 16.3 18.0 19.6 21.0 Cash flow
RoCE (%) 16.9 13.8 15.2 17.2 19.7 (₹ mn) FY15 FY16 FY17E FY18E FY19E
RoIC (%) 14.3 11.7 13.0 14.7 15.8 Pre-tax profit 802 654 813 997 1,215
Total tax paid (266) (212) (266) (326) (400)
Valuations Depreciation 310 319 336 357 384
Price-earnings (x) 19.7 23.6 19.2 15.6 12.9 Working capital changes (334) (122) (126) (289) (354)
Price-book (x) 4.0 3.7 3.3 2.9 2.5 Net cash from operations 513 639 758 739 845
EV/EBITDA (x) 10.6 11.7 10.2 8.9 7.6 Cash from investments
EV/Sales (x) 2.0 2.0 1.8 1.6 1.4 Capital expenditure (218) (249) (239) (450) (469)
Dividend payout ratio (%) 27.7 33.5 33.2 33.2 33.2 Investments and others (0) (6) - - -
Dividend yield (%) 1.4 1.4 1.9 2.1 2.6 Net cash from investments (219) (255) (239) (450) (469)
Cash from financing
B/S ratios Equity raised/(repaid) - - - - -
Inventory days 128 107 123 123 120 Debt raised/(repaid) 111 (166) (100) (100) (200)
Creditors days 74 72 75 76 76 Dividend (incl. tax) (175) (174) (236) (266) (323)
Debtor days 109 114 111 108 106 Others (incl extraordinaries) (7) (10) 49 0 -
Working capital days 149 151 148 144 140 Net cash from financing (72) (350) (287) (366) (523)
Gross asset turnover (x) 1.2 1.2 1.2 1.3 1.3 Change in cash position 222 34 232 (77) (147)
Net asset turnover (x) 2.7 2.6 2.9 3.2 3.4 Closing cash 278 313 545 468 321
Sales/operating assets (x) 2.4 2.5 2.8 3.1 3.4
Current ratio (x) 2.1 2.1 2.1 2.1 2.0
Debt-equity (x) 1.3 1.1 0.9 0.8 0.7
Net debt/equity (x) 1.2 1.0 0.8 0.7 0.6 Quarterly financials (Standalone)
Interest coverage (₹ mn) Q2FY16 Q3FY16 Q4FY16 Q1FY17 Q2FY17
EBIT/Interest (x) 4.9 4.4 6.3 7.8 9.8 Net Sales 1,681 1,588 1,724 1,746 1,797
EBITDA/Interest (x) 6.5 6.1 8.6 10.3 12.7 Change (q-o-q) 5.1 (5.5) 8.6 1.3 2.9
EBITDA 308 203 309 293 283
Per share Change (q-o-q) 32.9 (34.3) 52.3 (4.9) (3.4)
FY15 FY16 FY17E FY18E FY19E EBITDA margin 18.3 12.8 17.9 16.8 15.8
Adj EPS (₹) 5.4 4.5 5.6 6.9 8.3 PAT 157 78 120 141 164
CEPS (₹) 8.6 7.8 9.1 10.5 12.3 Adj PAT 157 78 120 141 164
Book value (₹) 26.5 29.2 32.9 37.1 42.2 Change (q-o-q) 48.9 (50.3) 53.9 17.6 16.0
Dividend (₹) 1.5 1.5 2.0 2.3 2.8 Adj PAT margin 9.3 4.9 7.0 8.1 9.1
Actual o/s shares (mn) 96.9 96.9 96.9 96.9 96.9 Adj EPS 1.6 0.8 1.2 1.5 1.7
22
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CRISIL Research Team
Senior Director
Nagarajan Narasimhan CRISIL Research +91 22 3342 3540 nagarajan.narasimhan@crisil.com
Analytical Contacts
Prasad Koparkar Senior Director, Industry & Customised Research +91 22 3342 3137 prasad.koparkar@crisil.com
Binaifer Jehani Director, Customised Research +91 22 3342 4091 binaifer.jehani@crisil.com
Manoj Damle Director, Customised Research +91 22 3342 3342 manoj.damle@crisil.com
Jiju Vidyadharan Director, Funds & Fixed Income Research +91 22 3342 8091 jiju.vidyadharan@crisil.com
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Last updated: April 2016
Analyst Disclosure
Each member of the team involved in the preparation of the grading report, hereby affirms that there exists no conflict of interest that can bias
the grading recommendation of the company.
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