ZF Commercial Vehicle Control Systems India (ZFCVINDIA) Q4 09/10 earnings summary

Executive summary

• FY10 delivered record net sales of Rs 59,125.80 lakhs, up 37% YoY, and record PBT of Rs 11,833.19 lakhs, up 127% YoY.

• Clayton Dewandre Holdings acquired an additional 35.83% stake on 3 June 2009, taking ownership to 75%; WABCO Holdings was the ultimate holding entity.

Financial highlights

• Net sales Rs 59,125.80 lakhs vs Rs 42,594.58 lakhs; total income Rs 60,946.82 lakhs vs Rs 44,577.78 lakhs.

• Profit before interest, depreciation and tax Rs 13,567.09 lakhs vs Rs 7,334.11 lakhs; PBT Rs 11,833.19 lakhs vs Rs 5,255.48 lakhs.

• PAT Rs 7,858.55 lakhs vs Rs 3,552.21 lakhs; basic and diluted EPS Rs 41.43 vs Rs 18.73.

• Net fixed assets Rs 18,016.03 lakhs; net current assets Rs 9,178.12 lakhs; reserves and surplus Rs 26,083.52 lakhs at 31 March 2010.

Outlook and guidance

• FY11 MHCV industry growth forecast at 10–12%; improved infrastructure activity and agricultural output expected to support freight demand and vehicle sales.

• Capital expenditure of Rs 35 crore planned for FY11, to be incurred on a case-by-case basis after considering industry growth.

• Product priorities include North American valve devices, braking systems, compressors with energy-saving features, AMT production introduction and electronic braking systems for Indian customers.