ZF Commercial Vehicle Control Systems India (ZFCVINDIA) Q4 13/14 earnings summary

Executive summary

• FY14 total revenue and other income rose 16% to ₹1,137.9 crore, while profit after tax declined to ₹117.5 crore from ₹130.8 crore YoY.

• Aftermarket sales grew 7% and exports grew 110% YoY despite a 21% decline in domestic medium and heavy commercial vehicle sales.

Financial highlights

• Revenue from operations was ₹1,110.7 crore versus ₹965.9 crore; net sales were ₹1,045.8 crore versus ₹917.4 crore.

• Profit before tax was ₹161.1 crore versus ₹184.9 crore; profit after tax was ₹117.5 crore versus ₹130.8 crore.

• Raw material costs rose to 55.6% of total income from 52.2%; total expenditure was 85.8% of total income versus 81.0%.

• Proposed dividend remained ₹5 per share, absorbing ₹9.48 crore.

Outlook and guidance

• FY15 capital expenditure of ₹90 crore planned, reflecting expected industry growth.

• FY15 GDP growth outlook cited at 5.0%–6.5%; exports, new systems and post-regulation ABS volumes were identified as growth opportunities.

• Planned product launches include air processing and distribution assemblies, lift axle control systems, actuators and aftermarket trailer ABS, EBS and ECAS.