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For the Dec 2011 quarter, WABCO India (previously WABCO TVS India) reported 21% growth to Rs 37.64 crore in net profit aided by healthy topline, favorable non operating performance and crash in effective tax rate though moderated by fall at operating level. The topline grew by 17% to Rs 255.45 crore on healthy exports and domestic sales to OEMs though limited partially by fall in aftermarket sales. Higher staff and other expenditure though partially offset by healthy sales and lower raw material costs led to limited 30 bps fall in the operating profit margin (OPM). Thus the operating profit grew by 15% to Rs 57.02 crore.
Quarter Performance
The total operating income grew by 17% to Rs 255.45 crore in Dec 2011 quarter. Out of this, net sales grew by 17% to Rs 246.17 crore on healthy exports and domestic sales to OEMs though moderated by lower aftermarket sales. Increased content per vehicle offering enabled healthy 22% growth in domestic sales to OEMs to Rs 171 crore, outbeating the 16% growth in production of medium & heavy commercial vehicle (M&HCV) industry in Dec 2011 quarter. M&HCV is the sole industry it caters to. Also the exports grew by 25% to Rs 37.4 crore on account of new products offered for exports. However the aftermarket sales, that contributed 16% to total, fell by 7% to Rs 38.3 crore.
Increased staff cost and other expenditure though partially offset by healthy sales and fall in raw material costs led to 30 bps fall in OPM to 22.3%. Thus the operating profit grew by limited 15% to Rs 57.02 crore. Other expenditure, as % to sales to net stock adjusted, grew by 110 bps to 15%. Also the staff cost increased by 100 bps to 9%. Only the raw material costs crashed by 180 bps to 54%.
The PBT grew by 17% to Rs 55.04 crore on overall favorable non operating performance i.e. healthy other income and moderate depreciation cost. Other income grew by robust 51% to Rs 1.91 crore while the depreciation cost grew only by 9% to Rs 3.84 crore. The interest cost increased by 326% to Rs 0.06 crore. Further crash in effective tax rate by 230 bps lifted the net profit by 21% to Rs 37.64 crore.
Nine Month Performance
In nine month ended Dec 2011, the topline grew by 18% to Rs 764.86 crore aided by growth across all divisions. The domestic sales to OEMs grew by 16% to Rs 502 crore compared to 12% growth in M&HCV Industry's production in nine month ended Dec 2011. The exports grew by robust 47% to Rs 116.40 crore on new product offerings. However aftermarket sales grew by flat 4% to Rs 119.30 crore. Increase in staff cost and other expenditure though partially offset by lower raw material costs and healthy topline led to limited 20 bps fall in OPM to 22.3%. Thus the operating profit grew by 17% to Rs 170.93 crore. The PBT grew by 19% to Rs 163.59 crore on overall favorable non operating performance. Further the net profit settled with 23% growth to Rs 114.39 crore on 240 bps crash in effective tax rate.
- The promoters' shareholding stood unchanged at 75% for the quarter ended Dec 2011. None of the shares' held by promoters are pledged.
The scrip is trading at Rs 1354.50 on BSE.
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