ZF Commercial Vehicle Control Systems India (ZFCVINDIA) Q3 24/25 earnings summary

Executive summary

• Q3 FY24-25 saw 4.4% revenue growth year-over-year, driven by strong aftermarket and export sales despite a decline in OEM sales due to lower vehicle production and an unfavorable mix.

• Unaudited standalone and consolidated financial results for the quarter and nine months ended 31 December 2024 were reviewed and approved by the Board on 6 February 2025.

• Appointment of Mr. Paramjit Singh Chadha as Managing Director effective 1 July 2025, subject to shareholder approval.

• Appointment of Mr. Jose Raj as Head Human Resource and Senior Management Personnel effective 19 March 2025.

• Strategic focus on innovation, product launches, and operational efficiency supported margin expansion and future growth positioning.

Financial highlights

• Standalone revenue from operations for Q3 FY25 was ₹95,589 lakhs, up from ₹88,682 lakhs in Q3 FY24.

• Consolidated revenue from operations for Q3 FY25 was ₹96,241 lakhs, up from ₹89,851 lakhs in Q3 FY24.

• EBITDA margin improved to 23.3% from 20.5% year-over-year, with profit after tax rising 2.4% to INR 126 crores.

• Standalone profit after tax for Q3 FY25 was ₹12,491 lakhs, compared to ₹10,985 lakhs in Q3 FY24.

• Aftermarket revenue grew 20.6% year-over-year to INR 132.4 crores.

Outlook and guidance

• Domestic commercial vehicle industry expected to grow, supported by government infrastructure spending and improved rural demand.

• Real GDP growth for FY24-25 projected at 6.6%, with Q3 at 6.8% and Q4 at 7.2%.

• Management anticipates continued growth in exports, aftermarket, and digital business, with positive signals from OEM demand and new orders.

• Postal ballot to seek shareholder approval for material related party transactions with ZF CV Systems Global GmbH for FY 2025-26.