Financial Analysis of ZF Steering India Ltd

Financial Analysis of ZF Steering India Ltd

Akhil Saraswat, Amrit Sharma, Dhaivat Acharya, Raj Vadukul, Rajdeepsinh Parmar, Ronak Sani

ZF Steering India• Incorporated in the year 1980 as a joint venture  zf friedrichshafen ag.•  a Pioneer in Manufacturing and Supply of  Ball and Nut  Integral

Hydraulic Power &  Worm and Roller Mechanical Steering System in  India.

• The plant is located at village Vadu Budruk, Taluka- Shirur, 28 Km away from Pune.

• Present installed capacity is• 2,00,000 units of Worm and Roller Mechanical Steering Gears • 2,50,000 units of Ball and Nut Integral Hydraulic Power Steering Gears• 60,000 units of Mechanical Rack & Pinion Steering Gears per annum.•  certification for QMS vide ISO: TS: 16949:2009 and ISO: 14001.

Valuable Customers• Ashok Leyland• Force Motors• Mahindra Trucks & Buses• SML Isuzu Ltd.• Tata Motors Ltd• Volvo Group• International tractors Ltd.• TAFE Motors & Tractors Ltd.• Piaggio vehicles Private Limited

Mission• We are firmly set on being market leaders in state of art technology for

steering gear system.• We shall ensure that our product give the necessary comfort and safety

in driving.• We shall give top priority to ensure customer satisfaction through best

quality products and services.• We shall, in the process of our growth, continuously upgrade our

working environment and skill efficiency of everyone associated by perseverance and motivation.

Dinesh Munot -Chairman and Managing Director

Price Ratios Year March

'07March

'08March

'09March

'10March

'11March

'12March

'13March

'14March

'15

P/E Ratio 6.29 5.86 6.11 8.40 7.24 6.81 8.05 19.13 29.37

PEG Ratio

1.91 1.78 1.85 2.54 2.19 2.06 2.44 5.80 8.90

Price to Sales 0.88 0.81 0.58 1.23 1.09 0.99 0.73 1.02 3.48

Price to book value

2.63 2.09 1.08 1.87 2.50 1.52 1.16 1.49 4.83

Dividend yield(%) 3.80 4.03 6.59 2.91 2.78 2.60 3.19 2.14 0.79

Dividend Payout Ratio(%)

22.98 16.10 12.40 27.30 58.37 23.14 14.36 13.77 28.28

Price to Earning Ratio

March '07 March '08 March '09 March '10 March '11 March '12 March '13 March '14 March '150.00

5.00

10.00

15.00

20.00

25.00

30.00

35.00

Price to Earning RatioLinear (Price to Earning Ratio)

PEG Ratio

March '07 March '08 March '09 March '10 March '11 March '12 March '13 March '14 March '150.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

10.00

PEG RatioLinear (PEG Ratio)

Price to Sales

March '07 March '08 March '09 March '10 March '11 March '12 March '13 March '14 March '150.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

Price to SalesLinear (Price to Sales)

Price To Book Value

March '07

March '08

March '09

March '10

March '11

March '12

March '13

March '14

March '15

0.00

1.00

2.00

3.00

4.00

5.00

6.00

Price to book valueLinear (Price to book value)

Dividend Yield(%)

March '07

March '08

March '09

March '10

March '11

March '12

March '13

March '14

March '15

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

Dividend yield(%)Linear (Dividend yield(%))

Dividend Payout Ratio(%)

March '07

March '08

March '09

March '10

March '11

March '12

March '13

March '14

March '15

0.00

10.00

20.00

30.00

40.00

50.00

60.00

70.00

Dividend Payout Ratio(%)Linear (Dividend Payout Ratio(%))

Inferences

Profitability Ratios YEAR March

'07March

'08March

'09March

'10March

'11March

'12March

'13March

'14March

'15Return On Assets

20.43 17.62 8.87 14.60 17.57 13.98 8.25 4.51 10.49

Return On Equity

30.64 25.52 12.34 21.14 24.66 23.02 11.70 6.25 14.33

Profit Margin 12.73 12.51 8.61 13.26 13.72 13.19 8.19 4.84 10.76

Return On Assets

March '07 March '08 March '09 March '10 March '11 March '12 March '13 March '14 March '150.00

5.00

10.00

15.00

20.00

25.00

Return On AssetsLinear (Return On Assets)

Return On Equity

March '07 March '08 March '09 March '10 March '11 March '12 March '13 March '14 March '150.00

5.00

10.00

15.00

20.00

25.00

30.00

35.00

Returm On EquityLinear (Returm On Equity)

Profit Margin

March '07 March '08 March '09 March '10 March '11 March '12 March '13 March '14 March '150.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

Profit MarginLinear (Profit Margin)

Inferences

Liquidity Ratios YEAR March

'07March

'08March

'09March

'10March

'11March

'12March

'13March

'14March

'15Current Ratio 3.92 2.66 3.19 1.68 2.82 1.59 1.58 1.56 1.47

Quick Ratio 2.49 1.59 1.78 1.02 1.97 1.17 1.22 1.20 1.11

Current Ratio

March '07 March '08 March '09 March '10 March '11 March '12 March '13 March '14 March '150.00

0.50

1.00

1.50

2.00

2.50

Current RatioLinear (Current Ratio)

Quick Ratio

• Quick Ratio

March '07 March '08 March '09 March '10 March '11 March '12 March '13 March '14 March '150.00

0.50

1.00

1.50

2.00

2.50

3.00

Quick RatioLinear (Quick Ratio)

Inferences

Debt Ratio YEAR March

'07March

'08March

'09March

'10March

'11March

'12March

'13March

'14March

'15Debt to Equity Ratio

2.34 1.50 1.67 1.39 1.33 1.16 1.14 1.14 1.15

Interest Coverage Ratio

81.47 72.21 34.52 93.64 233.92 58.72 14.46 66.03 51.31

Debt to Equity Ratio

March '07 March '08 March '09 March '10 March '11 March '12 March '13 March '14 March '150.00

0.50

1.00

1.50

2.00

2.50

Debt to Equity RatioLinear (Debt to Equity Ratio)

Interest Coverage Ratio

March '07 March '08 March '09 March '10 March '11 March '12 March '13 March '14 March '150.00

50.00

100.00

150.00

200.00

250.00

Interste Coverage RatioLinear (Interste Coverage Ratio)

Inferences

Efficiency Ratio YEAR March

'07March

'08March

'09March

'10March

'11March

'12March

'13March

'14March

'15Assets turn over ratio

3.48 3.09 2.30 3.99 2.92 3.43 2.72 2.59 3.28

Inventory turn over ratio

9.50 7.65 5.19 10.27 9.62 13.09 12.08 11.19 13.30

Assets turn over ratio

March '07 March '08 March '09 March '10 March '11 March '12 March '13 March '14 March '150.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

Assets turn over ratioLinear (Assets turn over ratio)

Inventory turn over ratio

March '07 March '08 March '09 March '10 March '11 March '12 March '13 March '14 March '150.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

Inventory turn over ratioLinear (Inventory turn over ratio)

Inferences

Cash Flow AnalysisMar 2006

Mar 2007

Mar 2008

Mar 2009

Mar 2010

Mar 2011

Mar 2012

Mar 2013

Mar 2014

Mar 2015

Cash from Operating Activity

29.93 11.41 11.47 30.22 26.31 47.77 31.15 58.39 47.63 25.83

Cash from Investing Activity

-23.42

-8.70 -8.80 -17.09

-8.15 -55.28

-15.00

-71.63

16.82 -27.89

Cash from Financing Activity

-2.66 -7.53 -2.81 -7.36 -7.65 -5.62 -8.41 23.42 -56.55

-13.49

Net Cash Flow

3.85 -(4.82)

-0.14 5.77 10.51 -13.13

7.74 10.18 7.90 -15.55

in Rs. Crores