Menon Bearings Limited , a key player in the auto components and engineering parts segment, has announced its unaudited financial results for the quarter and nine months ended December 31, 2020, showcasing remarkable growth across key financial metrics.

Financial Highlights

The company reported a significant year-over-year improvement in its financial performance:

The robust growth in total income, coupled with even stronger growth in profitability metrics, indicates improved operational efficiency and cost management during the quarter.

Interim Dividend Declaration

In a move that will reward shareholders, the Board of Directors has declared an interim dividend of Rs 1.50 per equity share for the financial year 2020-21. The total dividend payout amounts to Rs 840.60 lakhs, reflecting the company's strong cash position and commitment to shareholder returns.

Key details of the dividend:

• Record Date: February 4, 2021
• Payment Period: February 11-18, 2021

Shareholders on record as of February 4, 2021, will be eligible to receive the interim dividend.

Industry Context

Menon Bearings Limited primarily operates in the auto components and engineering parts segment. The strong financial performance, despite the challenges faced by the automotive industry, suggests that the company has successfully navigated the market conditions and potentially capitalized on the recovery in the auto sector.

The significant growth in revenue and profitability may be attributed to factors such as increased demand for auto components, potential market share gains, or successful cost optimization strategies implemented by the company.

As the automotive industry continues to evolve, with a focus on electric vehicles and advanced technologies, companies like Menon Bearings that demonstrate financial resilience and growth are well-positioned to adapt to changing market dynamics.

Menon Bearings Limited , a leading manufacturer of engine bearings and components, has reported a strong financial performance for the first quarter of fiscal year 2026. The company's revenue grew by 17% year-on-year to ₹67.90 crores, driven by robust demand from both automotive and industrial sectors.

Financial Highlights

The company's profitability showed significant improvement, with EBITDA increasing by 22.19% to ₹13.60 crores, resulting in a healthy EBITDA margin of 20.00%. Profit after tax rose by 36.91% to ₹8.43 crores, compared to ₹6.16 crores in the same quarter last year.

Operational Performance

Menon Bearings reported an average capacity utilization of 78% for the quarter, indicating strong demand for its products. The company's core segments, including engine bearings, bushings, and thrust washers, continued to perform well in both domestic and international markets.

Export Growth

The company's focus on expanding its international presence has yielded positive results. The export share increased from 28% to 30%, with expectations to reach 35% by the end of the fiscal year. Notably, Menon Bearings secured a significant order worth ₹30 crores from a US customer, with production set to commence next month.

Subsidiary Performance

Menon Alkop Limited, the company's wholly-owned subsidiary operating in the aluminium die casting segment, posted a revenue of ₹20.26 crores for the quarter. The subsidiary's performance was driven by increasing demand from the automotive sector.

Future Outlook

Management has provided a positive outlook for the company:

• Revenue target of ₹300 crores for the current fiscal year
• Projected revenue of ₹350 crores for the next fiscal year
• Expected annual growth rate of 18-20%

Expansion Plans

The company's brakes division is awaiting the installation of a ₹3 crores dynamometer equipment by September. This equipment is crucial for obtaining railway and OEM approvals, and the division is targeting a revenue of ₹100 crores once fully operational.

The Alkop division has set an ambitious target of ₹120 crores revenue by 2027, based on the development of 63 new parts over the past two years.

Menon Bearings' strong Q1 FY26 performance, coupled with its strategic initiatives in export markets and new product developments, positions the company for continued growth in the coming quarters.