Weak European demand dents CIE Automotive India's Q3 profit

CIE Automotive India

17/10/2023 14:33

BENGALURU, Oct 17 (Reuters) - Auto components maker CIE
Automotive India  CIEA.NS  on Tuesday reported a 11.4% rise in
third-quarter profit - its slowest growth in four quarters -
hurt by a sharp slide in its European segment revenue.
    The unit of Spain's CIE Automotive  CIEA.MC  reported a
consolidated profit from continuing operations of 1.87 billion 
rupees ($22.46 million) for the three months to Sept. 30,
compared with 1.68 billion rupees a year earlier.
    Weak demand for cars in CIE's key Europe market, which
analysts say brings higher margins, also saw overall revenue
rise just 2.2% – its slowest growth in five quarters.
    Revenue from the European segment – which fell for a
second-straight quarter – declined around 38%. Revenue from
CIE's domestic business dropped 0.4%.
    The company, which makes gear boxes and engine parts among
other things and counts Maruti Suzuki  MRTI.NS  and Hero
MotoCorp  HROM.NS  among its customers also named Shriprakash
Shukla as its chairman.
    Shares of the company ended 3.7% lower ahead of the results.
CIE shares are up 43.5% so far this year, outperforming the
Nifty Auto index's  .NIFTYAUTO  31% rise.


($1 = 83.2427 Indian rupees)

 (Reporting by Nandan Mandayam in Bengaluru; Editing by Nivedita
Bhattacharjee)
 ((Nandan.Mandayam@thomsonreuters.com; Mobile: +91 9591011727;))