NSK Ltd., The Current Fiscal Year Net Income Revised Downward to an Unexpected 29% Decrease

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Thu Oct 31, 2024 3:00 pm JST Earnings

6471 NSK Ltd. 【IFRS】

Earnings Report

NSK Ltd. <6471> [TSE-P] announced its financial results (based on IFRS) after the market closed on October 31st (15:00). The consolidated net income for the cumulative second quarter of the fiscal year ending March 2025 (April to September) surged by 3.0 times that of the same period last year, reaching 1.96 billion yen, resulting in an increase in profits compared to the previous forecast of a 24.1% decrease.

However, the full-year consolidated net income has downwardly by 68.4%, from the previous forecast of 19 billion yen to 6 billion yen (compared to 8.5 billion yen in the previous period). This changes the outlook from an anticipated profit increase to a projection of a 29.4% decrease in profit.

Based on the first-half performance announced by the company and the full-year plan, our calculation indicates that the consolidated net income for the October to March period (second half) is expected to drop by 48.6% from the same period last year to 4.03 billion yen.

In the most recent three-month period, from July to September (2Q), the consolidated net income significantly dropped to 67 million yen, a 95.8% decrease compared to the same period last year. The operating profit margin worsened from 3.5% in the same period last year to 1.9%.

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Actual Results

Accumulated Results 2nd Quarter

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Progress Rate vs. First Half	Announce	Accounting Standards
Apr - Sep, 2022	386,237	19,606	19,113	6,027	11.8	44.2	Oct 31, 2022	IFRS
Apr - Sep, 2023	386,691	11,123	10,528	659	1.3	40.2	Oct 31, 2023	IFRS
Apr - Sep, 2024	397,643	9,704	7,735	1,969	4.0	43.0	Oct 31, 2024	IFRS
YoY	+2.8%	-12.8%	-26.5%	+198.8%	+203.0%

First Half Results vs. Previous Guidance

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Apr - Sep, 2024 Guidance	393,000	8,000	7,000	500	1.0	17	May 9, 2024	IFRS
Apr - Sep, 2024 Results	397,643	9,704	7,735	1,969	4.0	17	Oct 31, 2024	IFRS
Revision Rate	+1.2%	+21.3%	+10.5%	+293.8%	+295.1%

Guidance Update

Full Year Update

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Mar, 2025 Prev	820,000	36,000	33,500	19,000	38.9	34	May 9, 2024	IFRS
Mar, 2025 New	790,000	22,000	18,000	6,000	12.3	34	Oct 31, 2024	IFRS
Revision Rate	-3.7%	-38.9%	-46.3%	-68.4%	-68.4%

Current Period Guidance

Second Half Results

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Oct - Mar, 2023	402,176	16,268	15,682	7,843	15.9	15	May 9, 2024	IFRS
Oct - Mar, 2024 Guidance	392,357	12,296	10,265	4,031	8.3	17	Oct 31, 2024	IFRS
YoY	-2.4%	-24.4%	-34.5%	-48.6%	-48.2%

Current Period Guidance

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Mar, 2023	776,762	43,836	43,282	18,412	35.9	30	May 12, 2023	IFRS
Mar, 2024	788,867	27,391	26,210	8,502	17.3	30	May 9, 2024	IFRS
Mar, 2025 Guidance	790,000	22,000	18,000	6,000	12.3	34	Oct 31, 2024	IFRS
YoY	+0.1%	-19.7%	-31.3%	-29.4%	-28.9%

Quarterly Results

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Operating Profit Margin	Announce	Accounting Standards
Jul - Sep, 2023	198,444	6,995	6,251	1,588	3.2	3.5	Oct 31, 2023	IFRS
Oct - Dec, 2023	201,368	8,180	8,108	4,064	8.2	4.1	Feb 2, 2024	IFRS
Jan - Mar, 2024	200,808	8,088	7,574	3,779	7.7	4.0	May 9, 2024	IFRS
Apr - Jun, 2024	200,495	5,873	5,153	1,902	3.9	2.9	Jul 29, 2024	IFRS
Jul - Sep, 2024	197,148	3,831	2,582	67	0.1	1.9	Oct 31, 2024	IFRS
YoY	-0.7%	-45.2%	-58.7%	-95.8%	-95.6%