- 30 Apr 2025
- ICICIdirect Research
CIE AUTOMOTIVE INDIA CONSOLIDATED REVENUE FOR Q1CY25 CAME IN AT RS2273 CRORES
News: Consolidated revenue for Q1CY25 came in at ~₹2,273 crores, down 6% YoY. EBITDA for the quarter stood at ₹335.5 crores (down 7% YoY) with corresponding EBITDA margins at 14.8% (up 60 bps QoQ). CIE India reported tad muted growth with sales up only 3% YoY at ₹ 1,411 crore and EBITDA margins at 18.6% (down 60 bps YoY) while European operations witnessing a sharp decline of 19% YoY at ₹785 crore with EBITDA margins at 13.9% (down 160 bps YoY).
View: Company’s overall performance was negatively impacted due to European market performance as well as lower than anticipated India sales. It saw significant decline in its overseas sales, as global demand in the 4W and CV markets continued to remains sluggish. CIE continues to expand its presence in the EV and lightweight components space in India with ~₹1,000 crores as new order wins, 25% of which are EV-related. This strategic shift towards electrification aligns with the growing adoption of EVs in India. We look forward for management commentary on future growth prospects and measures to mitigate the industry decline prospects at its overseas operations. The stock is expected to open negative in opening trade today, however with a long-term perspective valuations have turn lucrative.
Impact: Negative