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.
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