ZF Commercial Vehicle Control Systems India (ZFCVINDIA) Q4 15/16 earnings summary

Executive summary

• FY16 total revenue from operations and other income rose 36.9% YoY to ₹1,873 crore, with commercial-vehicle recovery supporting stronger sales.

• Profit after tax increased to ₹204.62 crore from ₹120.66 crore; EPS rose to ₹107.88 from ₹63.61.

Financial highlights

• Net revenue from operations was ₹1,838.27 crore, up from ₹1,347.96 crore; total revenue was ₹1,872.88 crore, up from ₹1,368.26 crore.

• PBT increased 53.5% YoY to ₹271.16 crore; PAT rose to ₹204.62 crore from ₹120.66 crore.

• Raw-material costs rose to ₹1,121.10 crore from ₹790.03 crore; staff costs increased to ₹173.78 crore from ₹143.45 crore.

• Other income included a ₹9.67 crore net gain on sale of current investments.

Outlook and guidance

• M&HCV truck sales were forecast to grow 13–15% in FY17; bus demand was expected to benefit from JNNURM Phase II replacement.

• FY17 capital expenditure was planned at ₹90 crore, following ₹89.78 crore spent in FY16.

• Growth opportunities included ABS requirements, higher content per vehicle, aftermarket retrofits, trailers, telematics and expansion into off-highway, defense, luxury bus, car and trailer segments.