Future growth expectations in earnings/operating earnings/profits/EPS?

India Business: Expected to grow above market average in medium to long term; growth supported by ramp-up of delayed export projects (e.g., Stellantis), product mix improvement, and operational efficiencies. EBIT, EBITDA Margins: Margins maintained well despite market weakness due to strong cost control and productivity gains; further margin improvements expected with higher sales. European Business: Revenue and earnings expected to remain under pressure for next 2-3 quarters due to weak light vehicle market, EV adoption delays, emission penalty uncertainty, and Chinese imports. Recovery in Eu

Any current/future capex/capital investment/strategic investment?

There is no explicit mention of current or future specific capex or strategic investment plans in the provided transcript excerpt. The company is focusing on managing costs and improving operational efficiency, especially in Europe, by controlling factory operations and reducing temporary workforce. Investments in India include ramping up production at the new Hosur plant with expected growth in exports. Continuous focus on productivity improvements and internal efficiency measures is underway in India. Expansion plans include aiming to increase the export rate from India above current 10-11%,

Future growth expectations in sales/revenue/volumes?

India business: - Expecting recovery and growth of 5-6% in coming quarters, especially in 2-wheelers and tractors. - Several ramp-ups and new projects with Mahindra, Bajaj, Toyota, Hyundai, Kia, and others in pipeline. - Focus on opening customer portfolio to grow beyond anchor clients. - Export orders delayed, especially for Stellantis, expected to ramp up next year. Europe business: - Market expected to remain weak with a 7-10% decline for next 2-3 quarters. - Uncertainty due to slow EV market ramp-up, emission penalties, and Chinese imports. - Growth expected after mid-next

Current/ Expected Orderbook/ Pending Orders?

The order book is currently in a healthy situation with new businesses being secured regularly. Some programs, especially export projects for global customers like Stellantis, have experienced delays affecting sales growth. These delays are primarily due to the slowdown and uncertainty in the European automotive market, particularly with electrification programs being postponed. The company expects ramp-ups of delayed programs, especially at the new Hosur plant in India, to occur in upcoming quarters. Growth targets aim to exceed the market by 5%, although some targets were missed due to these

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CIE Automotive India LtdQ3 FY24Auto Components

CIE Automotive India Ltd Q3 FY24 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹471P/E: 20.8Market Cap: ₹18.0K CrSector: Auto Components

Management growth scorecard

Revenue

Category 4

Margin

Category 3

Fundraise

N/A

Order

N/A

Capex

N/A

0 of 2 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

Category 4

→India business:
→ - Expecting recovery and growth of 5-6% in coming quarters, especially in 2-wheelers and tractors.
→ - Several ramp-ups and new projects with Mahindra, Bajaj, Toyota, Hyundai, Kia, and others in pipeline.
→ - Focus on opening customer portfolio to grow beyond anchor clients.
→ - Export orders delayed, especially for Stellantis, expected to ramp up next year.
→Europe business:
→ - Market expected to remain weak with a 7-10% decline for next 2-3 quarters.
→ - Uncertainty due to slow EV market ramp-up, emission penalties, and Chinese imports.
→ - Growth expected after mid-next year when off-highway market recovers and uncertainties clear.
→ - Chinese OEM local production in Europe may bring new opportunities.
→Overall:
→ - Consolidated revenue growth uncertain near term due to Europe but offset by India growth.
→ - Margin improvement expected with productivity and operational efficiencies.

Margin guidance

Category 3

→India Business: Expected to grow above market average in medium to long term; growth supported by ramp-up of delayed export projects (e.g., Stellantis), product mix improvement, and operational efficiencies.
→EBIT, EBITDA Margins: Margins maintained well despite market weakness due to strong cost control and productivity gains; further margin improvements expected with higher sales.
→European Business: Revenue and earnings expected to remain under pressure for next 2-3 quarters due to weak light vehicle market, EV adoption delays, emission penalty uncertainty, and Chinese imports.
→Recovery in Europe: Anticipated from Q2/Q3 next year; off-highway market recovery expected post-U.S. elections (second half of next year).
→Consolidated Performance: Stable or modest improvement expected driven by India growth offsetting European weakness.
→Overall PAT: Positive long-term outlook but near-term uncertainties preclude specific forward guidance on profits or EPS.

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Fundraise plans

The provided document does not mention any current or future fundraising plans through debt or equity for CIE Automotive India Limited. Key points related to financials and operations include: - Focus on cost control, maintaining EBITDA margins close to 18%. - Managing the current weak European market with cost-cutting and operational efficiencies. - No explicit mention of plans for raising funds via debt or equity. - Emphasis on organic growth, operational improvements, and managing uncertainties in the automotive market environment. - Expectation of recovery in market conditions, but no reference to capital raising activities. Therefore, based on available information from the document, there are no disclosed plans for fundraising through debt or equity at this time.

Order book

→The order book is currently in a healthy situation with new businesses being secured regularly.
→Some programs, especially export projects for global customers like Stellantis, have experienced delays affecting sales growth.
→These delays are primarily due to the slowdown and uncertainty in the European automotive market, particularly with electrification programs being postponed.
→The company expects ramp-ups of delayed programs, especially at the new Hosur plant in India, to occur in upcoming quarters.
→Growth targets aim to exceed the market by 5%, although some targets were missed due to these delays.
→The company is optimistic about future growth once these programs start ramping up and new products increase turnover.
→The impact on consolidated revenue depends on market trends and ramp-ups in the first half of the next year.

Capex plans

→There is no explicit mention of current or future specific capex or strategic investment plans in the provided transcript excerpt.
→The company is focusing on managing costs and improving operational efficiency, especially in Europe, by controlling factory operations and reducing temporary workforce.
→Investments in India include ramping up production at the new Hosur plant with expected growth in exports.
→Continuous focus on productivity improvements and internal efficiency measures is underway in India.
→Expansion plans include aiming to increase the export rate from India above current 10-11%, leveraging competitive technology.
→There is anticipation of growth linked to electrification programs once delayed projects in Europe ramp up, particularly with customers like Stellantis.
→The company remains vigilant about market uncertainties but expects to capitalize on future growth opportunities when market conditions improve.

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1CIE Automotive India Ltd

Rev 4Mar 3

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