India's Mahindra CIE reports 73% rise in Q4 profit on robust domestic, European demand

CIE Automotive India

25/04/2023 14:22

BENGALURU, April 25 (Reuters) - Indian auto components
supplier Mahindra CIE Automotive Ltd  MAHN.NS  reported a nearly
73% surge in fourth-quarter profit on Tuesday, boosted by strong
domestic and European demand. 
    A subsidiary of Spain's CIE Automotive  CIEA.MC , Mahindra
CIE's consolidated profit was at 2.79 billion Indian rupees 
($34.06 million) in the quarter ended March 31, up from 1.61
billion rupees a year ago. 
    Lower commodity costs and pent-up demand supported sales in
the Indian auto industry for the year. Pre-buying of vehicles
ahead of the implementation of new fuel emission norms from
April 1, and strong demand during the festival season also drove
sales.
    European business of the Mumbai-based company outperformed
Indian business by 5.8%. Europe, a key market of the company,
clocked revenue at 15.53 billion rupees for the quarter,
constituting nearly 51.4% of total revenue.
    The revenue from the India segment rose 13.3% to 14.68
billion rupees.
    The automotive company, which counts Maruti, Tata- Jaguar
Land Rover (JLR) and Renault among its customers, reported
revenue at 24.4 billion rupees in the fourth quarter, up from
20.61 billion rupees a year earlier, while expenses jumped 16.7%
    Meanwhile, Mahindra & Mahindra, the second biggest
stakeholder in the Mahindra CIE, sold over 6% stake in Mahindra
CIE Automotive last month, bringing its stake in the company to
3.19% from 9.25%.
    Shares of Mahindra CIE have risen 4.3% in 2023 versus a 3.2%
drop in the Nifty 500 index  .NIFTY500 . The stock closed 1.4%
lower on the day ahead of the results.
    
    
    


($1 = 81.9200 Indian rupees)

 (Reporting by Yagnoseni Das in Bengaluru)
 ((Yagnoseni.Das@thomsonreuters.com; +91 6001289066;))