SNL Reports Second Quarter 2006 Results

SNL Bearings Ltd. (India, BSE: 505827) a publicly-traded division of NRB Bearings Ltd.) reported second quarter results for the period ended September 30, 2006. NRB Bearings acquired SNL in 2000, but SNL's accumulated losses had long been a drag on NRB's performance. This quarter continued a strong upswing for SNL. Sales in the quarter were Rs 394 million (USD $8.8 million) up 37% over Rs 288 million ($6.4 million) for the same period in 2005. Net profit was also up strongly, hitting Rs 48 million ($1.1 million) from 2005's Rs 14 million ($312,000), an improvement of 243%. Shriram Needle Bearing Industries Ltd. was founded in 1983 as a joint venture between INA Bearing (Germany) and Shriram Group (India) to manufacture needle bearings. Today, the company is known as SNL Bearings Ltd. and produces a wide variety of needle roller bearings and loose rollers for automotive, 2-wheeler, truck, and industrial applications. In June 2000, NRB Bearings (formerly Needle Roller Bearings Ltd.) acquired a 69% stake in SNL from its former parent SRF. Three industrial banking groups are the other major shareholders in SNL, with 21% total. SNL's accumulated losses of Rs 1.4 billion are still in excess of its paid-in capitalization of Rs 1.3 billion, but management said in a statement it believes the company, "is a going concern and will continue to be son in the foreseeable future, having regard to the continuing support of the holding company and the restructuring process initiated by the management." NRB also renegotiated its payment terms with SNL, knocking the coupon rate on its Rs 1 billion from 9% down to 2%, and simultaneously extending repayment terms to 12 years repayable at Rs 20 million per year on face value Rs 100 million.