ZF STEERING 2023-24 Annual Report Analysis

Wed, 21 Aug

ZF STEERING has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

ZF STEERING Income Statement Analysis

• Operating income during the year rose 6.1% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 6.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 10.9% in FY24 as against 12.4% in FY23.
• Depreciation charges increased by 4.8% and finance costs increased by 40.3% YoY, respectively.
• Other income grew by 158.2% YoY.
• Net profit for the year grew by 78.0% YoY.
• Net profit margins during the year grew from 5.4% in FY23 to 9.1% in FY24.

ZF STEERING Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	4,504	4,778	6.1%
Other income	Rs m	133	343	158.2%
Total Revenues	Rs m	4,637	5,121	10.4%
Gross profit	Rs m	559	523	-6.5%
Depreciation	Rs m	322	337	4.8%
Interest	Rs m	7	10	40.3%
Profit before tax	Rs m	363	519	42.9%
Tax	Rs m	118	82	-30.4%
Profit after tax	Rs m	245	437	78.0%
Gross profit margin	%	12.4	10.9
Effective tax rate	%	32.4	15.8
Net profit margin	%	5.4	9.1

Don't Miss: Key Information for Long-term Investors

ZF STEERING Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 950 million as compared to Rs 839 million in FY23, thereby witnessing an increase of 13.3%.
• Long-term debt stood at Rs 356 million as compared to Rs 21 million during FY23, a growth of 1596.7%.
• Current assets rose 12% and stood at Rs 2 billion, while fixed assets rose 19% and stood at Rs 4 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 6 billion as against Rs 5 billion during FY23, thereby witnessing a growth of 17%.

ZF STEERING Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	4,187	4,582	9.4
Current Liabilities	Rs m	839	950	13.3
Long-term Debt	Rs m	21	356	1,596.7
Total Liabilities	Rs m	5,026	5,871	16.8
Current assets	Rs m	1,724	1,935	12.2
Fixed Assets	Rs m	3,302	3,937	19.2
Total Assets	Rs m	5,026	5,871	16.8

ZF STEERING Cash Flow Statement Analysis

• ZF STEERING's cash flow from operating activities (CFO) during FY24 stood at Rs 349 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -522 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 286 million, an improvement of 143% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 112 million from the Rs -20 million net cash flows seen during FY23.

ZF STEERING Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	489	349	-28.6%
Cash Flow from Investing Activities	Rs m	-626	-522	-
Cash Flow from Financing Activities	Rs m	117	286	143.2%
Net Cash Flow	Rs m	-20	112	-

Current Valuations for ZF STEERING

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 48.2, an improvement from the EPS of Rs 27.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,479.9, stands at 31.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.9 times, while the price to sales ratio stands at 2.8 times.
• The company's price to cash flow (P/CF) ratio stood at 8.5 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	496.6	526.8
TTM Earnings per share	Rs	27.1	48.2
Diluted earnings per share	Rs	27.0	48.1
Price to Cash Flow	x	6.8	8.5
TTM P/E ratio	x	15.8	31.8
Price / Book Value ratio	x	1.2	1.4
Market Cap	Rs m	4,862	6,593
Dividends per share (Unadj.)	Rs	5.0	8.0

Ratio Analysis for ZF STEERING

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.0x during FY24, from 2.1x during FY23. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio improved and stood at 52.4x during FY24, from 51.4x during FY23. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company improved and stood at 9.5% during FY24, from 5.9% during FY24. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 10.7% during FY24, from 8.8% during FY23. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company improved and stood at 7.6% during FY24, from 5.0% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	2.1	2.0
Debtors’ Days	Days	9	7
Interest coverage	x	51.4	52.4
Debt to equity ratio	x	0.0	0.1
Return on assets	%	5.0	7.6
Return on equity	%	5.9	9.5
Return on capital employed	%	8.8	10.7

To see how ZF STEERING has performed over the last 5 years, please visit here.

ZF STEERING Share Price Performance

Over the last one year, ZF STEERING share price has moved up from Rs 801.8 to Rs 1,479.9, registering a gain of Rs 678.1 or around 84.6%.

Overall, the S&P BSE SENSEX is up 23.8% over the year.

(To know more, check out historical annual results for ZF STEERING and quarterly results for ZF STEERING)