ZF Steering Gear surges on strong Q2 earnings

The stock surged 9% to Rs 1,494 after the company posted 71% YoY jump in net profit at Rs 13.57 crore for the quarter ended September 30, 2015.

ZF Steering Gear India has surged 9% to Rs 1,494 on the BSE in noon deals after the company reported 71% year on year (YoY) jump in net profit at Rs 13.57 crore for the quarter ended September 30, 2015 (Q2), on back of healthy operational income.

The company engaged in automotive components and renewable energy business had profit of Rs 7.91 crore in the same quarter year ago.

Net sales of the company increased by 17% at Rs 96.67 crore on YoY basis.

Operating or EBITDA (earnings before interest, tax, depreciation and amortization) margin expanded by 519 basis points from 17.42% to 22.61%.

Meanwhile, the company said with a view to prepare for establishment of second manufacturing facility for auto components, the board of directors of the company decided to acquire an Industrial Plot offered by State Industries Promotion Corporation of Tamilnadu Ltd. (SIPCOT), on a lease of 99 years, at its Industrial-park at Vallam-Vadagal, Chennai, Tamilnadu.

The company is in a process to complete the formalities relating to the acquisition of the plot, it added.

At 12:24 PM, the stock was up 8.6% at Rs 1,490 on the BSE as compared to 0.35% rise in the S&P BSE Sensex. About 28,000 shares changed hands so far against an average 3,449 shares that were traded daily in past two weeks on the BSE.