Mahindra CIE Automotive’s shares gained close to 12 percent in the afternoon trade on Friday, a day after it reported strong numbers for the December quarter. The company's net profit for the December quarter tripled on year to Rs 195 crore on strong operational performance and exceptional gain.

The company’s operating numbers were also strong despite a sharp rise in input costs and other expenses. The company recorded a gain of Rs 37.87 crore for the quarter, a significant improvement from the exceptional loss of Rs 12.8 crore in the same period last year.

The automotive components manufacturer, in a conference call on Wednesday, revealed that it is confident of growth ahead as its key customers like Maruti Suzuki, Mahindra and Mahindra and Tata Motors plan new launches.

The company further said that its new plants in Hosur and Rajkot are already in the process of getting operational. Mahindra CIE Automotive is a subsidiary of the CIE automotive group of Spain. Mahindra & Mahindra holds a 9.25 percent stake in the company as of December 2022.

The company reported 153 percent year-on-year (YoY) growth in its consolidated profit at Rs 195 crore for Q4 FY23 on strong operational performance and exceptional gains. It further said that it is likely to deliver more than 10 percent growth in CY23.

Also Read: TVS Motor could be among top 2 two-wheeler makers by 2030 as EV biz promises increase in market share: Analyst

Its consolidated revenue for the December quarter was at Rs 2,247 crore, up 35 percent compared to the same period during FY22 on strong operations in India and cost pass-throughs in the European Union. While the company’s India business grew 21.7 percent year-on-year to Rs 1,407 crore, its Europe business increased by 43 percent to Rs 1,323.1 crore during the same quarter.

Earnings before interest, tax, depreciation and amortisation (EBITDA) for Q4 FY23 stood at Rs 292.4 crore, up 62.2 percent over Q4 FY22. The margin expanded by 221 bps for the quarter to 13.01 percent compared to the year-ago period. Mahindra CIE expects its margin to further improve due to falling power costs.

Additionally, the company also revealed that it had won new orders of over Rs 1,000 crore in 2022 and its new EV orders amounted to around Rs 300 crore.

Also Read: Renault-Nissan India employees to get raise of up to Rs 30,000 per month after long negotiations

First Published:Feb 24, 2023 1:17 PM IST