Equity
Hot Pursuit Back
ICRA reaffirms ratings for Z F Steering Gear, DriveSys Systems, noting Rs 105 crore facilities
(04 Aug 2026, 15:31)
Z F Steering Gear (India) Ltd announced that ICRA reaffirmed its ratings for various instruments, including Long-term and Short-term Fund/ Non-fund Based – Working Capital Facilities amounting to Rs. 105.00, carrying ratings of [ICRA] A+ (Stable) and [ICRA] A1+ respectively, with the Long-term outlook reaffirmed as ‘Stable’; ICRA also reaffirmed ratings for its subsidiary, DriveSys Systems Private Limited, at [ICRA]BBB+(Stable) and [ICRA]A2, and noted that a rating is not provided for its Joint Venture, Metacast Auto Private Limited; ICRA’s ratings are constrained by modest scale, cyclicality, and the need for technology upgrades, while acknowledging a strong position in the domestic steering systems industry and presence in the commercial vehicle (CV) and tractor segments, alongside consolidated capex plans of Rs. 140-150 crore over FY2027 and FY2028; the agency also highlighted consolidated debt of Rs. 195.3 crore, a strong liquidity position with Rs. 87 crore in free cash and liquid investments, Rs. 30 crore in unutilised working capital limits, and ongoing legal matters including an alleged trademark infringement claim of Rs. 100 crore and suits for permanent injunction and passing off against ZF Friedrichshafen AG (ZF AG) totaling Rs. 400 crore, all based on consolidated financials, with the potential for a Long-term rating upgrade contingent on sustained improvement in scale and return indicators (RoCE).
 
Online Trading
Client Login
Open Account
Become Our Partner
Online Payment