CIE Automotive India (532756) Q3 2024 earnings summary

Executive summary

• Consolidated Q3 CY2024 sales were INR 20,606 million, declining 5% year-on-year due to European market weakness, while India showed modest growth.

• EBITDA margin improved to 17.2% from 16.9% year-on-year, reflecting operational improvements, especially in India.

• For 9M CY2024, consolidated sales were nearly flat at INR 66,003 million, with Indian operations offsetting European declines.

• PAT for 9M CY2024 dropped 33% year-on-year due to a high base in 2023 from discontinued operations; adjusted PAT grew 3.5%.

• Unaudited standalone and consolidated financial results for the quarter and nine months ended 30 September 2024 were approved by the Board on 24 October 2024.

Financial highlights

• Q3 CY2024 consolidated EBITDA was INR 3,548 million; EBIT was INR 2,750 million; EBT was INR 2,600 million with a margin of 12.6%.

• India Q3 CY2024 sales: INR 14,707 million; EBITDA: INR 2,606 million; EBIT: INR 2,032 million; EBT: INR 1,997 million.

• Europe Q3 CY2024 sales: INR 5,899 million, down 19% year-on-year; EBITDA margin at 16.0%.

• 9M CY2024 consolidated EBITDA was INR 11,574 million (flat year-on-year); EBIT was INR 9,076 million (flat year-on-year).

• Standalone Q3 CY2024 EPS: INR 3.26; 9M CY2024 EPS: INR 12.32. Consolidated Q3 CY2024 EPS: INR 5.13; 9M CY2024 EPS: INR 16.91.

Outlook and guidance

• Indian market expected to recover, with two-wheeler segment strong and tractor market steady; light vehicle market to see moderate growth.

• European market to remain weak for next 2-3 quarters, with recovery in U.S. off-highway expected from Q2/Q3 2025.

• Export growth from India targeted to reach 15% of sales in coming years.

• European light vehicle production is forecasted to grow at a modest CAGR of 1.5% from CY2024 to CY2029.

• Indian two-wheeler industry expected to rise 13-15% in FY2025; tractors to decline 2-4% in FY2025 but grow 4-6% CAGR through FY2029.