Zf Commercial Vehicle Control Systems India Ltd reported a 59 per cent increase in profit for the quarter ended June 30, 2023, at Rs 99.73 crore, compared to Rs 62.40 crore in the corresponding quarter last year. Revenues were up by 21 per cent at Rs 966.8 crore, compared to Rs 798.42 crore last year. Sequentially, profits were lower by 1.4 per cent, compared to Rs 101.20 crore in the previous quarter.
A report by ICICI Securities said the company’s 21 per cent YoY increase in overall revenue was bolstered by a robust performance in the export and new product segments. The increasing use of trailers, ESC, EBS, and electronic compressors contributed to the OEM segment’s growth.
Strong demand from the mining industry and state transport undertakings in Southern India drove an 18 per cent YoY increase in the aftermarket segment for ZF Commercials. The export segment played a vital role, with a 20 per cent YoY revenue rise attributed to demand from EU and US customers, including BMW and DAF.
Looking ahead, ZF Commercials aims to exceed its monthly ESC offtake target, riding on growing demand in the EV space and new product offerings, ensuring sustained growth in the future.
The shares went up by 2.72 per cent to Rs 13,290 at 1:42 p.m. on BSE.