CIEINDIA Q2 CY23 Results:
Future Outlook:
- In the medium term, the management is confident of outperformance in India operations led by overall industry growth, demand-backed capex and existing order commitments from OEMs. The management is focused on operational efficiencies to meet CIE parents’ EBITDA standards (18-19%).
- Company will continue to outperform overall market by 5-10% growth in both India and Europe Business.
- EV Portfolio focus: The Company’s Spanish plant has orders for steel forgings used in battery packs and aluminium forging parts for chassis. The Italian plant has orders from US OEMs for EV Transmission parts. CIE has already received several orders for aluminium forgings which will be produced at its Spanish facility. It will be upgrading this facility by adding machinery specific to aluminium forgings such as heat treatment ovens and certain finishing activities.
- Investments in capex are progressing in line with the management’s guidance. Till June, total capex amounted to INR246cr, with ~70%/30% allocated to growth/maintenance capex. The capex-to-sales ratio for H12023 stands at 5.4%. It is expanding operations in India and Mexico under growth capex.
- For sunroof business, the parent’s strategy in India is yet to be finalized currently housed in the parent owned subsidiary
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