ICICI Securities - Wabco India - Q2 Beat Driven By Exports Performance 
A welder works on a piece of equipment at the Chery Automobile Co. assembly plant under construction in Jacarei, Brazil. (Photographer Dado Galdieri/Bloomberg)

ICICI Securities - Wabco India - Q2 Beat Driven By Exports Performance 

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

Wabco India Ltd.’s Q2 FY21 results were a beat (albeit on downbeat consensus expectations) driven by resilient sales performance in exports (up 8.4% YoY), aftermarket division (up 1.7%).

Topline declined approximately 6% YoY to approximately Rs 4.2 billion; however, Ebitda margin improved 329 basis points YoY to 15.1% on the back of strong fixed cost reduction.

On a cyclical basis, we like Wabco India’s underlying business due to -

  1. dominant market share structure,
  2. strong volume rebound expectations (approximately 3,540% compound annual growth rate FY21-23) in domestic medium and heavy commercial vehicle industry and
  3. strong technology support (ZF Group).

Click on the attachment to read the full report:

ICICI Securities Wabco India Q2FY21 Results Update.pdf


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