- 23 Jul 2024
- ICICI Securities
ZF COMMERCIAL VEHICLE CONTROL SYSTEMS REPORTS STABLE PERFORMANCE IN Q1FY25
ZFCVINDIA - 12611 Change: -479.00 (-3.66 %)News: ZF Commercial Vehicle Control System (erstwhile Wabco) reported stable performance in Q1FY25. On standalone basis, total operating income for the quarter came in at ₹938 crore, down 2.3% YoY. EBITDA in Q1FY25 stood at ₹138 crore with corresponding EBITDA margins at 14.7% (flat YoY, down 70 bps QoQ). PAT in Q1FY25 came in at ₹99 crore (flattish QoQ & YoY).
Views: Topline growth at the company broadly followed single digit growth in M&HCV space domestically. We however await break up of sales as company realises ~40% of its sales from this OEM channel and rest from aftermarket & exports. With long run way of content increase, introduction of value-added services (like Telematics, ADAS etc.) and company’s parent intent to develop domestic manufacturing as one of the key global sourcing hubs, we have a positive view on the company with a long-term investment horizon.
Impact: Neutral