ZF Commercial Vehicle Control Systems India (ZFCVINDIA) Q4 11/12 earnings summary

Executive summary

• FY2011-12 revenue from operations and other income reached ₹1,057.70 crore, up 17.7% YoY, with growth despite a slowdown in the broader economy.

• Performance benefited from higher content per vehicle and improved MHCV OE market share; reported PAT rose to ₹153.40 crore.

Financial highlights

• Revenue from operations ₹1,045.64 crore vs ₹892.52 crore YoY; total revenue including other income ₹1,057.70 crore vs ₹897.88 crore.

• PBT ₹216.23 crore vs ₹191.37 crore; PAT ₹153.40 crore vs ₹127.43 crore; EPS ₹80.87 vs ₹67.18.

• Gross profit before interest, depreciation and tax ₹231.99 crore vs ₹206.00 crore; depreciation and amortization ₹15.64 crore vs ₹14.42 crore.

• Other income increased to ₹12.06 crore from ₹5.36 crore, including net exchange gain of ₹6.17 crore and investment-sale gain of ₹1.46 crore.

Outlook and guidance

• FY2012-13 commercial vehicle production was projected to grow 9.7%; domestic GDP growth outlook was 7.3%, according to the RBI baseline projection cited in the report.

• Planned FY2012-13 capital expenditure was ₹50 crore, with expected construction commencement at the Lucknow plant and commercial production targeted for February/March 2013.

• New product launches, exports and cost reduction through value engineering and global sourcing were identified as priorities.