ZF Commercial Vehicle control systems India hosted a conference call on May 26, 2023. In the conference call, the company was represented by Mr P Kaniappan – Managing Director and Mr RS Rajagopal Sastry – Chief Financial Officer.

Key takeaways of the call

Growth of electric mobility has opened up opportunity for the company, to provide high value content products such as electric compressors.

Compressors, which the company is producing in Mahindra City facility for global customers is witnessing expansion in customer base.

Strong focus on EV transition for bus segment will help company increase its content per vehicle. Company has started suppling electronic components to EV bus segment. Further mandatory requirement of implementation of ESCS in buses from April 2023 augur well for the company.    

Manufacturing of trailer in India is growing, driven by increased government support and improved infrastructure. Company expects its content per trailer to grow going forward.

Export sales grew 16.5% YoY in FY23. The company is confident of achieving growth in exports of existing products as well as plans to launch of new products.

Company expects CV growth momentum to continue driven by uptick in demand for LCV, HCV, Buses, Construction equipment and government’s continued push for infrastructure development.

Aftermarket sales increased in Q4 FY23 driven by various initiatives by management and new products.

Going forward, Company expects softening of commodity prices, which will help company improve its margins.

Company is rapidly localizing its products that were previously imported, along with focusing on redesigning of few products to reduce cost.

As a complete system solution provider, the Company uniquely connects truck, trailer, cargo, drivers, business partners and fleet operator''s real time to empower the fleets to significantly enhance safety and operational efficiency.

The Company is working with several OEMs in the country to reduce the Total Cost of Ownership (TCO) by recommending the right value enhancers and by providing improved uptime for the fleets through its Fleet Management Solutions.

Board recommended final dividend of Rs 13 per share of the face value of Rs 5 each for the financial year 2022-23.