{"id":159049,"date":"2024-02-21T10:25:13","date_gmt":"2024-02-21T15:25:13","guid":{"rendered":"https:\/\/44.250.171.167\/?p=159049"},"modified":"2024-02-21T10:25:14","modified_gmt":"2024-02-21T15:25:14","slug":"cie-automotive-india-ltd-q3-fy24-earnings-conference-call-insights","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/cie-automotive-india-ltd-q3-fy24-earnings-conference-call-insights\/","title":{"rendered":"CIE Automotive India Ltd Q3 FY24 Earnings Conference Call Insights"},"content":{"rendered":"<p><strong>Key highlights from CIE Automotive India Ltd (CIEINDIA) Q3 FY24 Earnings Concall<\/strong><\/p>\n<ul>\n<li><strong>Financial Performance<\/strong>\n<ul>\n<li>India operations achieved 16.5% EBITDA margin in Q4 CY&#8217;23, up 15.7% YoY.<\/li>\n<li>European operations reported 16.9% EBITDA margin, improving from 14.5% YoY.<\/li>\n<li>Consolidated sales grew 3% year-on-year, while EBITDA and EBIT remained roughly flat.<\/li>\n<li>India operations saw 5% sales growth in CY\u201923.<\/li>\n<li>In CY\u201923 European operations reported 10% sales growth, in line with market growth.<\/li>\n<li>Consolidated sales grew 7%, with EBITDA margin at 17.1%.<\/li>\n<li>Recurrent consolidated PAT grew 18.4%, outpacing the 7% sales growth for CY\u201923.<\/li>\n<\/ul>\n<\/li>\n<li><strong>EV Strategy<\/strong>\n<ul>\n<li>Electric vehicles gaining traction globally due to climate change concerns.<\/li>\n<li>CIE has developed a comprehensive EV strategy and product selection across four categories.<\/li>\n<li>Products focused on addressing the EV market opportunity.<\/li>\n<\/ul>\n<\/li>\n<li><strong>India Growth Outlook<\/strong>\n<ul>\n<li>CIE aims to grow 5% higher than weighted average Indian auto market.<\/li>\n<li>This target was missed in recent quarters due to delayed EV ramp-ups and other factors.<\/li>\n<li>Management expects to get back to 5%+ growth target with some delay over next 1-2 quarters.<\/li>\n<li>India growth was impacted by delays in ramping up major EV and export projects, especially at Bill Forge.<\/li>\n<li>Transition from old to new models at key customer M&amp;M affecting volumes.<\/li>\n<li>Lower steel prices year-over-year reducing revenue growth.<\/li>\n<\/ul>\n<\/li>\n<li><strong>India Export Outlook<\/strong>\n<ul>\n<li>Exports were 14% of India revenues in 2022.<\/li>\n<li>Expect export share to increase going forward in casting, gears and forgings.<\/li>\n<li>Geo-political issues and logistics bottlenecks tempering export demand.<\/li>\n<li>Projects delayed by customers due to their own bottlenecks.<\/li>\n<li>CIE plants ready from capacity and capability perspective.<\/li>\n<li>Customers indicate delays are temporary and volumes will come.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Customer Portfolio<\/strong>\n<ul>\n<li>50+ customers contributing over INR 50 million each.<\/li>\n<li>Aim to grow emerging customers to improve mix over time.<\/li>\n<li>Anchor customers provide stability while portfolio drives growth.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Export Focus Areas<\/strong>\n<ul>\n<li>Targeting increase in exports from India operations.<\/li>\n<li>Export share was 14% of India revenues in 2022.<\/li>\n<li>Seeing opportunities in castings, forgings and gears.<\/li>\n<li>But localization and logistics issues to navigate.<\/li>\n<li>Largely new business rather than shifting CIE Europe work.<\/li>\n<li>CIE Europe itself operates at high margins already.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Margins Outlook<\/strong>\n<ul>\n<li>Targeting continued margin expansion in India.<\/li>\n<li>Currently at ~17% EBITDA margins in both India &amp; Europe.<\/li>\n<li>Benchmarking against wider CIE group margins.<\/li>\n<li>Aiming to close gap to CIE benchmarks over next 2-3 years.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Margins and Profitability<\/strong>\n<ul>\n<li>Underwhelmed a bit on growth in 2022.<\/li>\n<li>20%+ RONA at consolidated level in 2022.<\/li>\n<\/ul>\n<\/li>\n<li><strong>EV Outlook<\/strong>\n<ul>\n<li>15% of 2022 India orders electric vehicle related.<\/li>\n<li>Much higher in Europe forgings and gears business.<\/li>\n<li>Expecting increase with new Mahindra BORN models.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Metalcastello Outlook<\/strong>\n<ul>\n<li>Hit ~EUR80 million revenues in 2022.<\/li>\n<li>Cyclical downturn in key US market affecting volumes.<\/li>\n<li>Run rate around EUR60 million currently.<\/li>\n<li>Expect recovery in 2H 2023 after US elections.<\/li>\n<\/ul>\n<\/li>\n<li><strong>M&amp;A Strategy and Focus Areas<\/strong>\n<ul>\n<li>Optimal deal size INR 600 crores to INR 1,000 crores revenue.<\/li>\n<li>Focus on capability gaps and access to new customers.<\/li>\n<li>Areas like aluminum, plastics, light-weighting of interest.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Sunroof Business Update<\/strong>\n<ul>\n<li>Part of 2019 acquisition, runs as a separate unit Golde.<\/li>\n<li>Centralized global business based out of Germany.<\/li>\n<li>Managed independently within CIE.<\/li>\n<li>No plans currently to integrate with India ops.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Key highlights from CIE Automotive India Ltd (CIEINDIA) Q3 FY24 Earnings Concall Financial Performance India operations achieved 16.5% EBITDA margin in Q4 CY&#8217;23, up 15.7% YoY. European operations reported 16.9% EBITDA margin, improving from 14.5% YoY. Consolidated sales grew 3% year-on-year, while EBITDA and EBIT remained roughly flat. India operations saw 5% sales growth in [&hellip;]<\/p>\n","protected":false},"author":1767,"featured_media":154818,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[9825,392,5753],"tags":[8207,9973,10169],"class_list":["post-159049","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-earnings-call-highlights","category-earnings","category-industrials","tag-automobile-parts","tag-automotive","tag-earnings"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":181374,"url":"https:\/\/alphastreet.com\/india\/cie-automotive-india-reports-full-year-cy2025-revenue-growth-amid-margin-pressure\/","url_meta":{"origin":159049,"position":0},"title":"CIE Automotive India Reports Full-Year CY2025 Revenue Growth Amid Margin Pressure","author":"Staff Correspondent","date":"February 20, 2026","format":false,"excerpt":"CIE Automotive India Ltd (NSE: CIEINDIA) released audited financial results for Q4 and full-year CY2025 on February 19, 2026, showing consolidated revenue up 6% to \u20b991,223 million and stable PAT at \u20b98,282 million. 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