ZF Commercial Vehicle Control Systems India (ZFCVINDIA) Q4 10/11 earnings summary

Executive summary

• FY2010-11 net sales reached a record Rs. 86,779.73 lakhs, up 47% YoY; profit before tax rose 62% to Rs. 19,137.16 lakhs.

• FY2010-11 was the first full operating year following the increase in WABCO Holdings Inc.’s ownership to 75%.

Financial highlights

• Net sales were Rs. 86,779.73 lakhs versus Rs. 59,125.80 lakhs; total income was Rs. 89,922.91 lakhs versus Rs. 60,953.49 lakhs.

• Profit before tax was Rs. 19,137.16 lakhs versus Rs. 11,833.19 lakhs; profit after tax was Rs. 12,743.18 lakhs versus Rs. 7,818.96 lakhs.

• Profit before interest, depreciation and tax was Rs. 20,596.53 lakhs versus Rs. 13,573.76 lakhs; interest expense fell to Rs. 16.92 lakhs from Rs. 296.08 lakhs.

• Proposed dividend was Rs. 5.00 per share, absorbing Rs. 948.38 lakhs, versus Rs. 2.50 per share in FY2009-10.

Outlook and guidance

• FY2011-12 MHCV industry growth was forecast at 10–12%, supported by infrastructure development and higher agricultural output.

• Planned FY2011-12 capital expenditure was Rs. 60 crores, based on expected industry growth.

• A manufacturing facility near Lucknow was planned for 2012-13; phase 2 expansion at the Mahindra World City SEZ was underway.