CIE Automotive India's Q2 profit surges on robust domestic, European demand

CIE Automotive India

18/07/2023 15:47

BENGALURU, July 18 (Reuters) - Auto components supplier
CIE Automotive India  CIEA.NS  on Tuesday reported a 60% jump in
second-quarter profit, boosted by the growth in Indian and
European markets.
        The unit of Spain's CIE Automotive  CIEA.MC  reported a
consolidated net profit of 3.02 billion rupees ($36.8 million)
for the quarter ended June 30, compared to 1.89 billion rupees a
year ago.
    The quarter saw a sequential uptick in India's two-wheeler
sales on improving consumer sentiment across the wedding and
festive seasons, while the passenger vehicle volume growth
moderated owing to supply chain disruptions, global brokerage
Investec said.
    The company's European business, which constituted around
49% of its consolidated segmental revenue for the quarter, grew
5.3% year-on-year, outperforming the Indian business, which grew
4.8%.
    However, its Indian business accounted for around 61% of
sales, with the European segment amounting for the rest.
    The company, which counts Maruti Suzuki  MRTI.NS , Hero
MotoCorp  HROM.NS , Mahindra and Mahindra  MAHM.NS , and
Volkswagen  VOWG_p.DE  among its customers, reported a 4.7% jump
in revenue at 23.20 billion rupees, while expenses rose 3.5%.
    Earlier in the quarter, Mahindra divested its entire stake
in the company, resulting in a change in the name of the company
from Mahindra CIE Automotive to CIE Automotive India.
    Shares of the company ended down 2% ahead of the results.

($1 = 82.0702 Indian rupees)

 (Reporting by Ashish Chandra in Bengaluru; Editing by Sonia
Cheema and Varun H K)
 ((ashish.chandra@thomsonreuters.com; +91 7982114624;))