ZF STEERING 2021-22 Annual Report Analysis

Tue, 16 Aug

ZF STEERING has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

ZF STEERING Income Statement Analysis

• Operating income during the year rose 55.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 122.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 13.0% in FY22 as against 9.1% in FY21.
• Depreciation charges decreased by 16.5% and finance costs increased by 6.9% YoY, respectively.
• Other income declined by 20.4% YoY.
• Net profit for the year grew by 106.4% YoY.
• Net profit margins during the year grew from 4.4% in FY21 to 5.8% in FY22.

ZF STEERING Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	2,015	3,128	55.3%
Other income	Rs m	264	210	-20.4%
Total Revenues	Rs m	2,278	3,338	46.5%
Gross profit	Rs m	183	406	122.2%
Depreciation	Rs m	376	314	-16.5%
Interest	Rs m	3	3	6.9%
Profit before tax	Rs m	68	299	342.3%
Tax	Rs m	-21	116	-656.5%
Profit after tax	Rs m	89	183	106.4%
Gross profit margin	%	9.1	13.0
Effective tax rate	%	-30.9	38.9
Net profit margin	%	4.4	5.8

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ZF STEERING Balance Sheet Analysis

• The company's current liabilities during FY22 down at Rs 676 million as compared to Rs 833 million in FY21, thereby witnessing an decrease of -18.9%.
• Current assets rose 18% and stood at Rs 2 billion, while fixed assets fell 1% and stood at Rs 3 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 5 billion as against Rs 4 billion during FY21, thereby witnessing a growth of 5%.

ZF STEERING Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	3,766	3,951	4.9
Current Liabilities	Rs m	833	676	-18.9
Long-term Debt	Rs m	4	0	-100.0
Total Liabilities	Rs m	4,431	4,652	5.0
Current assets	Rs m	1,357	1,607	18.4
Fixed Assets	Rs m	3,074	3,046	-0.9
Total Assets	Rs m	4,431	4,652	5.0

ZF STEERING Cash Flow Statement Analysis

• ZF STEERING's cash flow from operating activities (CFO) during FY22 stood at Rs 152 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -162 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -32 million on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -41 million from the Rs 9 million net cash flows seen during FY21.

ZF STEERING Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	-263	152	-
Cash Flow from Investing Activities	Rs m	9	-162	-
Cash Flow from Financing Activities	Rs m	263	-32	-
Net Cash Flow	Rs m	9	-41	-

Current Valuations for ZF STEERING

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 20.1, an improvement from the EPS of Rs 9.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 516.6, stands at 24.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.2 times, while the price to sales ratio stands at 1.5 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-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	222.1	344.9
TTM Earnings per share	Rs	9.8	20.1
Diluted earnings per share	Rs	9.8	20.1
Price to Cash Flow	x	7.4	8.5
TTM P/E ratio	x	39.0	24.3
Price / Book Value ratio	x	0.8	1.1
Market Cap	Rs m	2,983	4,224
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for ZF STEERING

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.4x during FY22, from 1.6x during FY21. 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 97.5x during FY22, from 24.3x during FY21. 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 4.6% during FY22, from 2.3% during FY22. 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 7.6% during FY22, from 1.9% during FY21. 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 4.0% during FY22, from 2.1% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	1.6	2.4
Debtors’ Days	Days	14	11
Interest coverage	x	24.3	97.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	2.1	4.0
Return on equity	%	2.3	4.6
Return on capital employed	%	1.9	7.6

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 471.0 to Rs 516.6, registering a gain of Rs 45.6 or around 9.7%.

Overall, the S&P BSE SENSEX is up 9.6% over the year.

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