ZF Steering Gear (India) Limited , a leading manufacturer of steering systems for commercial vehicles and tractors, has reported mixed financial results for the fiscal year 2024-25. While the company saw modest revenue growth, profitability declined due to higher costs and lower other income.

Key Financial Highlights

• Revenue from operations increased by 1.05% to Rs. 492.86 crore, compared to Rs. 477.87 crore in the previous year.
• Net profit declined by 28.98% to Rs. 33.89 crore, down from Rs. 47.72 crore in FY 2023-24.
• Earnings per share (EPS) decreased to Rs. 37.35 from Rs. 52.59 in the previous year.
• The company's board did not recommend any dividend for FY 2024-25, citing the need to conserve resources for ongoing expansion and diversification plans.

Segment Performance

Operational Highlights

• Sales of power steering systems grew by 4.2% to Rs. 468.45 crore.
• Mechanical steering sales increased marginally by 1.4% to Rs. 19.37 crore.
• The company's 5 MW solar power project in Gujarat generated 0.69 crore units of electricity, with sales revenue of Rs. 4.50 crore.
• Wind energy operations generated 1.17 crore units, with 0.98 crore units used for captive consumption.

Expansion and Diversification

Chairman Dinesh Munot stated, "We are pursuing strategic initiatives for backward integration through our subsidiaries. Additionally, we have planned diversification into aluminum extrusion and manufacturing of certain electric equipment components."

The company has allocated approximately Rs. 94.00 crore towards its subsidiaries:

• Rs. 22.00 crore for expansion of existing businesses
• Rs. 72.00 crore for new business lines

Challenges

The decline in profitability was attributed to:

• Lower other income
• Increased fixed costs
• Higher finance costs

The company's finance cost rose to Rs. 2.86 crore, compared to Rs. 0.91 crore in the previous year, due to higher utilization of working capital limits.

Outlook

While facing near-term challenges, ZF Steering Gear (India) Limited remains focused on its expansion and diversification strategy. The company's investments in subsidiaries and new business lines are expected to drive future growth and create additional revenue streams.

ZF Steering Gear (India) Limited has received requests from three promoters seeking reclassification from the 'Promoter' category to 'Public' category, as disclosed in a regulatory filing on August 5, 2025.

Reclassification Details

The three promoters who have submitted reclassification requests are:

Rationale and Compliance

All three promoters have stated that they comply with the conditions prescribed under Regulation 31A(3)(b) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The key points mentioned in their requests include:

1. Each promoter holds less than 10% of the total voting rights in the company.
2. They do not exercise control over the affairs of the company, directly or indirectly.
3. They have no special rights through formal or informal agreements.
4. They do not have any representation on the Board of Directors.
5. They are not acting as Key Managerial Personnel in the company.
6. They are not 'willful defaulters' as per RBI guidelines.
7. They are not fugitive economic offenders.

The promoters have cited that they have no role in the company's affairs, no special rights, and no pecuniary or other interests in the company, either directly or indirectly, as the rationale behind their reclassification requests.

Approval Process

The reclassification requests will require approvals from:

1. The Board of Directors of ZF Steering Gear (India) Limited
2. The company's shareholders
3. BSE Limited

Regulatory Compliance

The company has made this disclosure in compliance with Regulation 30 and Regulation 31A(8) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

ZF Steering Gear (India) Limited has stated that a copy of this disclosure is available on the company's website at www.zfindia.com .

Investors and market participants will be watching closely as this reclassification process unfolds, as it could potentially impact the company's shareholding structure and governance dynamics.