Quarterly Analysis

For the quarter ended Mar'10 FAG Bearings reported a 25% increase in Total Income to Rs 237.40 crore. However the Operating Profit Margin (OPM) declined by 410 basis points to 15.3%. The resultant operating profit for the quarter ended Mar'10 stood at Rs 36.22 crore which was 2% lower as compared to the corresponding previous quarter last year.

The cost of Consumption of raw materials and components and Purchase of traded goods Increased as percentage of Total Income (net of stock adjustment) from 30.1% to 30.3% and from 24.5% to 32.9% respectively. The Employee cost and other expenditure decreased as percentage of Total Income (net of stock adjustment) from 8.6% to 6.9% and from 15.8% to 15.3% respectively.

For the quarter ended Mar'10 the other income of FAG Bearings increased sharply to Rs 2.89 crore. The other income mainly consisted of Interest Income which stood at Rs 2.87 crore during the quarter under review (corresponding period last year - Rs 1.05 crore). The ensuing PBIDT for the quarter ended Mar'10 stood at Rs 39.11 crore which was 3% higher as compared to the corresponding previous quarter last year.

For the quarter ended Mar'10 FAG bearings reported interest expense to the tune of Rs 0.17 crore as compared to Rs 0.11 crore during the corresponding period last year. The Deprecation charges increased by 2% to Rs 4.98 crore when compared with corresponding previous quarter last year. The resultant PBT before EO for the quarter ended Mar'10 stood at Rs 33.96 crore which was 3% higher when compared with corresponding previous quarter last year.

There was no exceptional item during the quarter under review as compared to an exceptional item (including prior period adjustment) to the tune of Rs 11.52 crore during the corresponding period last year. The ensuing PBT after EO stood at Rs 33.96 crore which was 58% higher on a Y-o-Y basis comparison. The tax expense during the period under review stood at Rs 11.49 crore resulting in a Net Profit for the period to the tune of Rs 22.47 crore which was 61% higher on a Y-o-Y basis comparison.

Year Ended Results

For the year ended December 2009 FAG Bearings reported a 8% increase in Total Income to Rs 818.65 crore. While the Net Sales / Income from Operations increased by 7% to Rs 797.69 crore, the other operating income increased by 34% to Rs 20.96 crore. The Operating Profit Margin (OPM) declined by 670 basis points to 15.2%. The resultant operating profit for the year ended December 2009 stood at Rs 124.11 crore which was 26% lower as compared to the corresponding period last year.

The cost of Consumption of raw materials and components, Purchase of traded goods and other expenditure Increased as percentage of Total Income (net of stock adjustment) from 29.3% to 30.6%, from 27.3% to 29.1% and from 14.6% to 16.1% respectively. The Employee cost as percentage of Total Income (net of stock adjustment) remained flat at 8.2%.

For the year ended December 2009 the other income of FAG Bearings increased by 30% to Rs 7.77 crore. The other income mainly consisted of Interest Income which stood at Rs 7.64 crore during the year under review (corresponding period last year - Rs 5.83 crore). The ensuing PBIDT for the year ended December 2009 stood at Rs 131.88 crore which was 24% lower as compared to the corresponding period last year.

For the year ended December 2010 FAG bearings reported interest expense to the tune of Rs 0.70 crore as compared to Rs 0.48 crore during the corresponding period last year. The Deprecation charges decreased by 2% to Rs 20.08 crore when compared with corresponding period last year. The resultant PBT before EO for the year ended December 2010 stood at Rs 111.10 crore which was 27% lower when compared with corresponding period last year.

There was exceptional item (including prior period adjustment) during the year under review to the tune of Rs 11.52 crore as compared to Rs 4.38 crore during the corresponding period last year. The ensuing PBT after EO stood at Rs 99.58 crore which was 32% lower on a Y-o-Y basis comparison. The tax expense during the period under review stood at Rs 34.04 crore resulting in a Net Profit for the period to the tune of Rs 65.54 crore which was 32% lower on a Y-o-Y basis comparison.

Promoters Holding

The promoters holding and promoter group shareholding from Quarter ended December 2009 to quarter ended March 2010 has remained flat at 51.3%.

Pledged

No shares have been pledged as on 31st December 2009.

Stock Price

Currently the stock is trading around Rs 597.0