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ZF STEERING 2017-18 Annual Report Analysis
Sat, 31 Mar

ZF STEERING has announced its results for the year ended March 2018. Let us have a look at the detailed performance review of the company during FY17-18.

ZF STEERING Income Statement Analysis

  • Operating income during the year rose 17.9% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 7.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 21.3% in FY18 as against 23.4% in FY17.
  • Depreciation charges increased by 19.6% and finance costs increased by 29.4% YoY, respectively.
  • Other income declined by 16.7% YoY.
  • Net profit for the year declined by 5.3% YoY.
  • Net profit margins during the year declined from 14.2% in FY17 to 11.4% in FY18.

ZF STEERING Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 3,508 4,135 17.9%
Other income Rs m 116 97 -16.7%
Total Revenues Rs m 3,624 4,232 16.8%
Gross profit Rs m 819 882 7.7%
Depreciation Rs m 279 333 19.6%
Interest Rs m 25 32 29.4%
Profit before tax Rs m 632 614 -2.9%
Tax Rs m 135 143 6.2%
Profit after tax Rs m 497 471 -5.3%
Gross profit margin % 23.4 21.3
Effective tax rate % 21.3 23.3
Net profit margin % 14.2 11.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



New Research: 2 stocks to buy as Nifty50 heads towards 40,000

ZF STEERING Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 1 billion as compared to Rs 1 billion in FY17, thereby witnessing an increase of 8.6%.
  • Long-term debt down at Rs 146 million as compared to Rs 158 million during FY17, a fall of 7.2%.
  • Current assets rose 14% and stood at Rs 2 billion, while fixed assets rose 10% and stood at Rs 3 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 4 billion as against Rs 4 billion during FY17, thereby witnessing a growth of 11%.

ZF STEERING Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 2,643 3,005 13.7
 
Current Liabilities Rs m 1,048 1,138 8.6
Long-term Debt Rs m 158 146 -7.2
Total Liabilities Rs m 4,044 4,492 11.1
 
Current assets Rs m 1,334 1,520 14.0
Fixed Assets Rs m 2,710 2,972 9.6
Total Assets Rs m 4,044 4,492 11.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



ZF STEERING Cash Flow Statement Analysis

  • ZF STEERING's cash flow from operating activities (CFO) during FY18 stood at Rs 675 million, an improvement of 7.9% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -546 million, an improvement of 16.3% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -105 million, an improvement of 33% on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs 24 million from the Rs -1 million net cash flows seen during FY17.

ZF STEERING Cash Flow Statement 2017-18

Particulars No. of months 12 12 % Change
Year Ending Mar-17 Mar-18
Cash Flow from Operating Activities Rs m 626 675 7.9%
Cash Flow from Investing Activities Rs m -470 -546 -
Cash Flow from Financing Activities Rs m -157 -105 -
Net Cash Flow Rs m -1 24 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for ZF STEERING

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 51.9, an decline from the EPS of Rs 54.8 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 1,020.8, stands at 19.7 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 3.1 times, while the price to sales ratio stands at 2.2 times.
  • The company's price to cash flow (P/CF) ratio stood at 14.3 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Sales per share (Unadj.) Rs 386.8 455.9
TTM Earnings per share Rs 54.8 51.9
Diluted earnings per share Rs 54.8 51.9
Price to Cash Flow x 15.5 14.3
TTM P/E ratio x 27.1 19.7
Price / Book Value ratio x 5.1 3.8
Market Cap Rs m 13,383 11,509
Dividends per share (Unadj.) Rs 8.0 8.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for ZF STEERING

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.3x during FY18, from 1.3x during FY17. 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 deteriorated and stood at 20.1x during FY18, from 26.4x during FY17. 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 declined and down at 15.7% during FY18, from 18.8% during FY18. 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 declined and down at 20.5% during FY18, from 23.4% during FY17. 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 declined and down at 11.2% during FY18, from 12.9% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Current ratio x 1.3 1.3
Debtors’ Days Days 79 81
Interest coverage x 26.4 20.1
Debt to equity ratio x 0.1 0.0
Return on assets % 12.9 11.2
Return on equity % 18.8 15.7
Return on capital employed % 23.4 20.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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 down from Rs 1,329.1 to Rs 1,020.8, registering a loss of Rs 308.4 or around 23.2%.

Overall, the S&P BSE SENSEX is up 12.1% over the year.

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

Annual Report FAQs

What is the current share price of ZF STEERING?

ZF STEERING currently trades at Rs 820.0 per share. You can check out the latest share price performance of ZF STEERING here...

What was the revenue of ZF STEERING in FY18? How does it compare to earlier years?

The revenues of ZF STEERING stood at Rs 4,232 m in FY18, which was up 16.8% compared to Rs 3,624 m reported in FY17.

ZF STEERING's revenue has grown from Rs 3,193 m in FY15 to Rs 4,232 m in FY18.

Over the past 4 years, the revenue of ZF STEERING has grown at a CAGR of 9.8%.

What was the net profit of ZF STEERING in FY18? How does it compare to earlier years?

The net profit of ZF STEERING stood at Rs 471 m in FY18, which was down -5.3% compared to Rs 497 m reported in FY17.

This compares to a net profit of Rs 254 m in FY16 and a net profit of Rs 207 m in FY15.

Over the past 4 years, ZF STEERING net profit has grown at a CAGR of 31.6%.

What does the cash flow statement of ZF STEERING reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of ZF STEERING reveals:

  • Cash flow from operations increased in FY18 and stood at Rs 675 m as compared to Rs 626 m in FY17.
  • Cash flow from investments decreased in FY18 and stood at Rs -546 m as compared to Rs -470 m in FY17.
  • Cash flow from financial activity increased in FY18 and stood at Rs -105 m as compared to Rs -157 m in FY17.

Here's the cash flow statement of ZF STEERING for the past 4 years.

(Rs m)FY15FY16FY17FY18
From Operations482509626675
From Investments-374-433-470-546
From Financial Activity-18-140-157-105
Net Cashflow91-64-124

What does the Key Ratio analysis of ZF STEERING reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of ZF STEERING reveals:

  • Operating profit margins witnessed a fall and stood at 21.3% in FY18 as against 23.4% in FY17.
  • Net profit margins declined from 14.2% in FY17 to 11.4% in FY18.
  • Debt to Equity ratio for FY18 stood at 0.0 as compared to 0.1 in FY17.

Here's the ratio/financial analysis of ZF STEERING for the past 4 years.

 FY15FY16FY17FY18
Operating Profit Margin (%)14.917.223.421.3
Net Profit Margin (%)6.76.814.211.4
Debt to Equity Ratio (x)0.00.00.10.0

Read: Latest Annual Report Analysis of ZF STEERING

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