NRB Bearings , a prominent player in the bearings industry, has made a strategic move into renewable energy sourcing by acquiring an 8.5% stake in Amplus Ampere Private Limited (Amplus). The acquisition, valued at ₹4.80 crore, is part of an arrangement to source 15 MWp of solar power in Maharashtra, signaling the company's commitment to sustainable energy practices.

Acquisition Details

NRB Bearings has purchased 48,00,000 equity shares of Amplus at face value, each share priced at ₹10.00. This investment represents a significant step for NRB Bearings in diversifying its energy sources and reducing its carbon footprint.

About Amplus Ampere

Amplus Ampere Private Limited, incorporated on March 26, 2021, is a Special Purpose Vehicle (SPV) floated by Amplus Energy Solutions PTE LTD. The company specializes in setting up, generating, and distributing power from solar power plants in India. Despite being a relatively new entity with no reported turnover in the past three fiscal years, Amplus is positioned to play a crucial role in NRB Bearings' renewable energy strategy.

Strategic Implications

The acquisition serves multiple purposes for NRB Bearings:

1. Renewable Energy Sourcing: The primary objective is to secure a reliable source of solar power, with a capacity of up to 15 MWp in Maharashtra.
2. Sustainability Initiative: This move aligns with global trends towards adopting cleaner energy sources and reducing industrial carbon footprints.
3. Cost Management: Long-term, this investment could potentially lead to more stable and predictable energy costs for NRB Bearings' operations in Maharashtra.

Transaction Timeline

According to the company's disclosure, the transaction is subject to customary conditions precedent and is expected to be completed within a period of 1-2 weeks from the announcement date.

Regulatory Compliance

NRB Bearings has confirmed that this acquisition does not fall under related party transactions, and no governmental or regulatory approvals are required for its completion.

Market Implications

While the immediate financial impact on NRB Bearings may be limited given the size of the investment, this strategic move positions the company as a forward-thinking entity in the manufacturing sector. It demonstrates NRB Bearings' commitment to sustainable practices and could potentially enhance its appeal to environmentally conscious investors and customers.

As industries worldwide face increasing pressure to adopt green technologies and reduce their environmental impact, NRB Bearings' investment in solar power capabilities could serve as a model for other manufacturing companies looking to balance operational needs with sustainability goals.

The completion of this transaction will mark a significant milestone in NRB Bearings' journey towards a more sustainable and energy-efficient future, potentially setting a precedent for similar initiatives in the Indian manufacturing sector.

NRB Bearings , a leading manufacturer of bearings in India, has announced strong financial results for the first quarter, demonstrating significant growth across key metrics.

Standalone Performance Highlights

NRB Bearings' standalone revenue reached Rs. 279.00 crores in Q1, marking a 10% year-over-year growth. The company's standalone EBITDA surged by an impressive 40.5% to Rs. 49.00 crores, with margins improving to 16.9%. This substantial margin expansion of 350 basis points showcases the company's operational efficiency and cost management capabilities.

The standalone profit after tax (PAT) saw a remarkable increase of 50.4%, reaching Rs. 26.00 crores. Consequently, the earnings per share (EPS) stood at Rs. 2.72, up from Rs. 1.81 in the same quarter last year.

Consolidated Performance

On a consolidated basis, NRB Bearings reported equally impressive results. The revenue grew by 7.2% to Rs. 310.00 crores, while EBITDA rose by 28.4% to Rs. 61.00 crores. The consolidated PAT increased by 28.1% to Rs. 33.00 crores, resulting in an EPS of Rs. 3.31.

Key Growth Drivers

The company attributed its strong performance to several factors:

• Robust domestic market performance
• Expanding presence in mobility segments
• Industrial segment delivering double-digit growth
• Customer-centric approach
• Operational agility
• Material cost optimization

Management Commentary

Harshbeena Zaveri, Managing Director of NRB Bearings, commented on the results, stating, "NRB continues to strengthen its position as a trusted mobility partner in an increasingly challenging global landscape. We outperformed the industry across all segments on a year-on-year basis, which is a testament to our customer-centric approach, operational agility, and deep domain expertise."

Global Presence and Recognition

NRB Bearings serves marquee customers including Mercedes, Volvo, Magna, Borg Warner, ZF, and Meritor across 43 countries. The company's commitment to excellence has been recognized with a recent Star Exporter Award. Additionally, CRISIL has reaffirmed NRB Bearings' AA-Stable credit rating, further validating the company's strong financial position and growth prospects.

Future Outlook

With its diversified team, technological capabilities, and strong relationships with global OEMs and Tier-1 suppliers, NRB Bearings is well-positioned to support the transformation journeys of its clients. The company's expertise across ICE, hybrid, and electric platforms, coupled with its award-winning R&D, provides a solid foundation for future growth in the evolving automotive and industrial sectors.

Upcoming Annual General Meeting

NRB Bearings has announced that its 60th Annual General Meeting (AGM) will be held on Thursday, September 11, at 3:00 P.M. (IST) through Video Conferencing (VC) or Other Audio-Visual Means (OAVM). The company has set Thursday, September 04, as the record date for determining shareholder eligibility to vote at the AGM.

Dividend Announcement

The Board of Directors has recommended a dividend of Rs. 4.30 per equity share (215% on a face value of Rs. 2 each) for the financial year ended March 31, subject to shareholder approval at the upcoming AGM.

As NRB Bearings continues to demonstrate strong financial performance and strategic positioning in the global market, investors and industry observers will be keen to see how the company capitalizes on its momentum in the coming quarters.