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For the Sep 2011 quarter, WABCO India (previously WABCO TVS India) reported growth of 26% to Rs 42.60 crore in net profit on account of healthy topline, fall in effective tax rate and support at operating level. The topline grew by 17% to Rs 264.42 crore on increased content per vehicle offerings to domestic OEMs and new export products boosting export sales. Fall in operating profit margin (OPM) was limited to 10 bps on account of cost control measures, securing price increase from certain customers and lower raw material costs. Thus the operating profit grew by 16% to Rs 61.88 crore.
On quarter on quarter basis, the topline grew by 8% q-o-q to Rs 264.42 crore from Rs 244.99 crore in June 2011 quarter. However, the OPM surged by whopping 220 bps enabling 19% growth in operating profit. The net profit grew by 25% q-o-q.
Quarter Performance
The total operating income grew by 17% y-o-y to Rs 264.42 crore in Sep 2011 quarter. Out of this, the net sales grew by 16% y-o-y aided by increased content per vehicle offerings from the company and robust exports. The domestic sales to OEMs grew by 13% to Rs 172 crore compared to 7% growth in medium & heavy commercial vehicle (M&HCV) production in Sep 2011 quarter, the sole segment the company caters to in auto industry. Besides this, the exports grew by robust 43% to Rs 40 crore on account of new products offered for exports. The contribution from exports to net sales has increased to 16% from 12% in Q2 FY 11. The aftermarket sales, that contribute around 17% to net sales, grew by flat 5% to Rs 42 crore.
Healthy topline, increase in prices and cost reduction measures limited the decline in OPM to 10 bps to 23.4%. Thus the operating profit grew by 16% to Rs 61.88 crore. Raw material costs, as % to sales net stock adjusted, crashed by 250 bps to 54%. On the other hand, staff cost and other expenditure grew by 210 bps to 9% and 30 bps to 14% respectively.
The PBT grew by 18% to Rs 59.32 crore on healthy other income and marginal depreciation costs. The other income grew by 38% to Rs 1.24 crore while the depreciation cost increased by meager 5% to Rs 3.81 crore. It incurred nil interest cost as against Rs 0.23 crore in Q2 FY 11. The net profit surged by 26% to Rs 42.60 crore on 460 bps crash in effective tax rate.
On quarter on quarter basis, the topline grew by 8% to Rs 264.42 crore from Rs 244.99 crore in June 2011 quarter. However, the OPM surged by whopping 220 bps to 23.4% on account of product mix, reduction in raw material costs, price hike and cost control measures. The operating profit grew by 19% q-o-q to Rs 61.88 crore. The profits were further aided by 250 bps crash in effective tax rate that enabled healthy 25% q-o-q growth in net profit.
Half Year Performance
In half year ended Sep 2011, the topline grew by 19% to Rs 509.42 crore on better than OEM market performance and impressive exports. The domestic sales to OEMs grew by 13% to Rs 331 crore while the M&HCV production grew by 10% in same period. It is attributed to increase content per vehicle offerings from the company. Also the exports grew by impressive 61% to Rs 79 crore. The aftermarket sales increased by 9% to Rs 81 crore. Increase in staff cost though partially offset by lower raw material costs and healthy topline led to limited 10 bps fall in OPM to 22.4%. Thus the operating profit grew by 18% to Rs 113.91 crore. Robust other income and meager depreciation cost lifted the PBT by 20% to Rs 108.56 crore. Further crash in effective tax rate by 240 bps boosted the net profit by 24% to Rs 76.75 crore.
- The promoters' shareholding stood unchanged at 75% for the quarter ended Sep 2011. None of the shares' held by promoters are pledged.
The scrip closed at Rs 1343, up by 3.4% on 21st Oct 2011.
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