Quarterly Results: ZF Steering Gears (India) Ltd

Technical View: 

Z F Steering Gear (India) Ltd is currently trading at Rs. 1509, down by 98.2 points or 6.11% from its earlier closing of Rs. 1607.2 on the BSE.
The scrip has touched a high and low of Rs. 1625.05 and Rs. 1501 respectively,after opening at 1625. By far 11422(NSE+BSE) shares were traded on the counter; and the stock is currently trading above its 50 DMA.

Consolidated Results Q2FY17: (Rs. in crore):


***EBITDA margin change in bps

Bloomberg estimates were above ZF Steering Gear India’s actual Q2FY17 standalone numbers. Net revenue for the period has come in 27.9% lesser than the estimate of Rs 125 cr.  Reported net profit for the period has come in 38% lesser than the estimate of Rs 15 cr.

The quarter's revenue has  dipped by 7.8% yoy to 89.71 cr. This is majorly attributed to a 5.4% yoy dip in auto component’s segment.

ZF Steering's reported EBITDA has dropped by 26.5% yoy to Rs 16.23 cr and EBITDA margins have shrunken 459 bps yoy to 18.1%. This was primarily triggered by 36% yoy surge in employee benefit expenses and  a growth of 14.8% yoy in other expenses. 

The company's net profit has dropped by 32.3% yoy to Rs 9.18 cr, triggered by an increase in depreciation cost of 11.3% yoy and a surge in effective tax rate to 31.8% from 24.7%.