How has been the historical performance of SNL Bearings?

Revenue and Profitability Trends

Over the seven-year period ending March 2025, SNL Bearings’ net sales exhibited a generally upward trend, rising from ₹40.64 crores in 2019 to ₹51.19 crores in 2025. Despite a slight dip in 2020, likely influenced by broader economic conditions, the company rebounded strongly, with sales increasing year-on-year from 2021 onwards. This growth reflects the company’s ability to expand its market presence and maintain demand for its products.

Operating profit margins, excluding other income, have fluctuated but remained robust, peaking at 27.79% in 2022 before settling at 25.57% in 2025. The gross profit margin similarly stayed healthy, consistently above 25%, indicating effective cost management and pricing power. Profit after tax (PAT) margins followed a comparable pattern, rising from 20.03% in 2019 to 21.22% in 2025, underscoring sustained profitability.

In absolute terms, PAT increased from ₹8.14 crores in 2019 to ₹10.86 crores in 2025, with earnings per share (EPS) reflecting this growth, reaching ₹30.08 in the latest fiscal year. This steady improvement in profitability metrics signals strong operational efficiency and financial discipline within the company.

Balance Sheet and Asset Quality

SNL Bearings’ balance sheet has strengthened considerably over the years. Shareholders’ funds rose from ₹34.74 crores in 2020 to ₹67.84 crores in 2025, reflecting accumulated reserves and retained earnings growth. The company has maintained a conservative capital structure, with negligible long-term borrowings and a total debt position effectively reduced to zero by 2025, enhancing financial stability.

The asset base expanded from ₹41.76 crores in 2020 to ₹75.03 crores in 2025, supported by investments in fixed assets and current assets. Notably, current investments surged significantly, indicating a strong liquidity position and prudent cash management. Inventories and sundry debtors have also increased in line with business growth, but the company’s net current assets have consistently improved, suggesting efficient working capital management.

Cash Flow and Operational Efficiency

Cash flow from operating activities has shown positive momentum, with ₹3 crores generated in 2025, albeit lower than the ₹10 crores recorded in 2023. The company has managed its working capital effectively, despite some fluctuations, and maintained disciplined investing and financing activities. Cash outflows from investing activities have moderated recently, while financing cash flows have remained negative, reflecting repayments or dividend distributions rather than new borrowings.

This cash flow profile supports the company’s ability to fund operations internally and invest in growth without reliance on external debt, a favourable sign for long-term investors.

Summary and Investor Takeaways

In summary, SNL Bearings has delivered a commendable historical performance characterised by steady revenue growth, strong profitability, and a robust balance sheet. The company’s ability to maintain healthy margins and generate positive cash flows while reducing debt levels highlights operational resilience and sound financial management.

Investors may find the company’s consistent EPS growth and improving book value per share, which rose from ₹96.23 in 2020 to ₹187.92 in 2025, particularly encouraging. These factors collectively suggest that SNL Bearings has built a solid foundation for sustainable growth and value creation in the competitive auto components sector.

While past performance is not always indicative of future results, the company’s track record provides a strong basis for confidence among shareholders and potential investors alike.

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