CIE Automotive

CIE Automotive India held an investor meeting organized by Anand Rathi in Mumbai, with participation from multiple institutional investors including PPFAS MF, Torus PMS, and Ambit Asset Management. The discussions focused on clarifications regarding the company's quarterly results presentation and conference call transcript available on their website.

CIE Automotive India Limited released its quarterly results transcript showing consolidated sales of INR 23.1 billion with 12% growth. The Indian operations achieved record quarterly sales of INR 15.2 billion, marking 9% year-on-year growth and 4.5% sequential growth. The company's Indian business EBITDA margin was 17.3%, impacted by energy tariff increases in Maharashtra. European operations reported sales of INR 7.9 billion with 18% growth, including an 11% positive exchange rate effect. The light vehicle market in India grew 5.6%, two-wheelers by 10%, and tractors by 14%. Management highlighted potential benefits from GST structure optimization which could improve three-year growth CAGR by 2.5-3%. US tariffs pose challenges with 25% on light vehicle components and 50% on trucks and tractors, though only 1% of Indian revenue is in high-risk category. European markets remain challenging with structural issues including stagnating EV penetration and Chinese import competition. Mahindra represents approximately one-third of the Indian business, with light vehicles contributing 52% of revenue mix, two-wheelers 21%, and tractors 18%.

CIE Automotive India anticipates sustained growth driven by three key factors: EV-ready components, export-driven orders, and localized production. The company expects this combination to create operational leverage and generate strong free cash flow over multiple years.