FAG India is a member company of FAG group of Germany - is a leading player in the Indian Bearing industry. It is a leading OEM supplier to the automotive industry, mechanical and electrical engineering industry, besides the Railways.

Year Performance

For the year ended Dec 13, the topline grew by 11% to Rs 1446.65 crore. The OPM crashed by 420 bps to 15.2% on spike in raw material and traded goods cost. Thus the operating profit dropped by 13% to Rs 220.4 crore. Raw material costs (including traded goods cost), as % to sales net stock adjusted, surged by 370 bps to 62.1%. Staff cost rose by 30 bps to 7.9% but other expenditure fell by 30 bps to 14.5%.

Robust growth in other income (up by 45%) to Rs 45.63 crore restricted the drop in profit at PBIDT level to 7% at Rs 265 crore. Though interest cost was steady, profits were further limited by higher depreciation cost (up 34%) to Rs 34.27 crore. This led to a 11% drop in PBT to Rs 233.47 crore. A 70 bps fall in effective tax rate resulted in 10% drop in net profit to Rs 159.18 crore.

Quarter Performance

The operating income was flat at Rs 347.12 crore during the fourth quarter ended Dec 2012. The OPM crashed by whopping 590 bps to 11.9% on 130 bps rise in raw material costs including traded goods cost, 190 bps rise in other expense and 160 bps rise in employee cost. Thus the operating profit dropped by 33% to Rs 41.3 crore .

PBT fell by 34% to Rs 41.81 crore on robust other income though partially limited by depreciation cost. The other income grew by notable 19% to Rs 9.47 crore while interest cost fell by 39% to Rs 0.22 crore. The depreciation cost rose by 39% to Rs 8.76 crore. The net profit settled with 31% drop to Rs 29.69 crore helped by 320 bps drop in effective tax rate.

The promoters' share in the total shareholding remains unchanged at 51.3% in Dec 12 quarter. The promoters' have pledged ‘nil' shares of the company.

The scrip is currently trading around Rs 1420 at BSE.