CIE Automotive India (532756) Q2 2024 earnings summary

Executive summary

• Consolidated sales for Q2 CY 2024 were INR 22,068 million, flat year-on-year, with Indian operations delivering 8% sales growth and margin expansion, offsetting an 11% decline in Europe due to market slowdown and Metalcastello weakness.

• H1 CY 2024 consolidated sales reached INR 45,397 million, showing nominal growth, with EBITDA up 2% and EBIT up 2% year-over-year.

• Indian business showed strong growth and margin improvement, with PAT margin exceeding 10% for the first time in H1, while European operations faced market headwinds and lower volumes.

• Standalone and consolidated financial results for the quarter and half year ended 30 June 2024 were approved by the Board on 18 July 2024.

• The company changed its name from Mahindra CIE Automotive Limited to CIE Automotive India Limited in the previous year.

Financial highlights

• India Q2 CY 2024 sales: INR 14,463 million, up 8% year-on-year; EBITDA up 16%, EBIT up 21%, EBT up 20%.

• Europe Q2 CY 2024 sales: INR 7,604 million, down 11% year-on-year; EBITDA margin: 17% (vs 19.2% last year), EBITDA down 21%, EBIT down 26%.

• H1 CY 2024 India sales up 7% to INR 28,851 million, with EBITDA up 17% and EBIT up 22%.

• H1 CY 2024 consolidated EBITDA margin: 17.7% (vs 17.4% last year); PAT margin dropped to 9.9% due to prior year one-time gain.

• Standalone revenue for H1 2024 was INR 23,086 million, up from INR 22,442 million year-over-year; standalone PAT for H1 2024 was INR 1,541.81 million.

Outlook and guidance

• India market outlook remains positive, with H2 expected to outperform H1; two-wheeler and tractor segments showing recovery.

• Europe expected to remain weak in H2 due to seasonality and ongoing market softness; 2025 forecasted as flat or slightly better, but uncertainty remains.

• Metalcastello expected to stabilize at current levels, with recovery anticipated post-U.S. elections in 2025.

• CapEx guidance for 2024: 5–5.5% of turnover, focused mainly on India.

• The Board and management did not provide explicit forward-looking guidance in the reviewed period.