CIE Automotive India (532756) Q4 05/06 earnings summary

Executive summary

• First operating year following transfer of Amforge Industries’ Chakan forging unit, effective 1 Apr 2005; gross income was ₹204.26 crore and net loss ₹11.95 crore.

• The Chakan transfer established forging operations; a new machining unit was commissioned in April 2006, supporting planned organic and inorganic growth.

Financial highlights

• FY 2005-06 net sales were ₹198.92 crore and other income ₹5.34 crore, for total income of ₹204.26 crore.

• Profit before interest, depreciation, contingency and tax was ₹11.13 crore; after ₹9.19 crore contingency provision and ₹8.41 crore interest cost, loss before tax was ₹11.82 crore.

• Net loss was ₹11.95 crore after ₹0.12 crore fringe benefit tax; basic EPS was -₹19.37 and diluted EPS -₹4.60.

• Adjusted for the first-year business transfer context, FY 2005-06 figures are not comparable with FY 2004-05, when operations had not begun.

Outlook and guidance

• Buoyant automotive demand and anticipated organic and inorganic growth were expected to improve turnover and profitability in coming years.

• The Chakan machining unit was commissioned in April 2006; the outlook also cited ongoing expansion of product mix and production automation plans.