Wabco India's net profit jumps considerably

Wabco India, the Indian subsidiary of US-headquartered auto-ancillary company has posted 88.45 per cent jump in net profit and stands at Rs 57.29 crore for the quarter ended March 31, 2016 as against Rs 30.40 crore in the corresponding quarter of the previous year.

The company’s revenue has grown by 47.84 per cent at Rs 566.52 crore in Q4FY16. Its operating profit (EBITDA) has grown by 42.90 per cent at Rs 80.54 crore; however operating profit margin has contracted by 49 bps for the current quarter, i.e. at 14.22 per cent. Other Income has grown by 72.94 per cent to Rs 10.21 crore in Q4FY16 as against Rs 5.90 crore in the corresponding period of the previous year.

For the entire period of FY16, it has reported 69.58 per cent growth in consolidated net profit of Rs 204.62 crore, and its revenue has grown by 36.37 per cent at Rs 1,838.27 crore. Its consolidated operating profit (EBITDA) has grown by 44.05 per cent at Rs 292.94 crore along with operating profit margin expanding by 85 bps for the current year at 15.94 per cent. Other Income has grown by 70.50 per cent to Rs 34.61 crore in FY16 as against Rs 20.30 crore in the same period of the previous year.

Wabco India dominates the Indian MHCV (medium heavy commercial vehicle) braking industry (both original equipment manufacturer and aftermarket) with more than 80 per cent market share. It enjoys the benefits of its global parent’s strong technology dominance among OEMs globally, which has helped the company to establish & maintain an elite customer relationship and easier product penetration.

On the valuation front, it is currently trading at 55.15 times, price to earnings (P/E) ratio per share of Rs 107.88 as on March 31, 2016. Currently stock is trading up by Rs 26.85 or 0.45 per cent at Rs 107.88 per share.