Z F Steering Gear Reports Growth Amid Rising Costs and Increased Leverage in June 2025 Results

Z F Steering Gear (India), a small-cap player in the auto components and equipment industry, has recently reported its financial results for the quarter ending June 2025. The results indicate notable shifts in the company's financial metrics, leading to an adjustment in its evaluation.
The company has demonstrated significant growth in key areas. Profit Before Tax (PBT) reached Rs 5.36 crore, reflecting a substantial increase compared to the average of the previous four quarters. Similarly, Profit After Tax (PAT) stood at Rs 7.97 crore, also showing considerable growth over the same period. Operating Profit (PBDIT) reached its highest level in five quarters at Rs 18.14 crore, with the Operating Profit Margin improving to 13.65%, indicating enhanced operational efficiency.

However, there are challenges as well. Interest expenses have risen to Rs 4.53 crore, marking a notable increase, which suggests higher borrowing costs. Additionally, the Debt-Equity Ratio has reached its highest point in recent periods, indicating a trend of increased leverage. Furthermore, a significant portion of the company's income is derived from non-operating activities, raising concerns about the sustainability of its business model.

Overall, Z F Steering's financial results reflect a complex landscape of growth and challenges, leading to a revision in its score.

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