CIE Automotive India (532756) Q4 07/08 earnings summary

Executive summary

• FY08 combined global operations through a merger effective 27 Dec 2007; consolidated accounts include overseas businesses for the first time and are not comparable with FY07.

• Consolidated net profit was Rs 1,578.84 lakh, while standalone operations recorded a net loss of Rs 1,417.19 lakh after a major 5,000-ton press breakdown and goodwill amortisation.

Financial highlights

• Consolidated revenue was Rs 233,099.64 lakh; profit before exceptional items and tax was Rs 5,606.90 lakh, and profit before tax was Rs 3,209.58 lakh.

• Consolidated exceptional items totalled Rs 2,397.32 lakh: goodwill amortisation Rs 1,738.53 lakh, Nimonic material loss Rs 604.43 lakh and workmen redundancy Rs 54.36 lakh.

• Standalone gross income was Rs 22,095.68 lakh, up 1.82% YoY; PBDIT before goodwill, contingency and other items was Rs 2,337 lakh versus Rs 2,440 lakh.

• Standalone loss before tax was Rs 1,849.72 lakh; loss after tax was Rs 1,417.19 lakh, against Rs 1,253.11 lakh in FY07.

Outlook and guidance

• Target significant YoY improvement in EBITDA margins over FY09–11, focused on integration, cost efficiency and better returns on employed capital.

• The 5,000-ton press was expected back in operation by end-Sep 2008; management expected three newly commissioned presses to help recover first-half FY09 production and revenue losses.

• Strategy prioritizes higher-value machined and complex forgings, cross-selling across locations, non-auto growth and a “one stop shop” customer proposition.