CIE Automotive India (532756) Q4 08/09 earnings summary

Executive summary

• FY09 standalone gross income rose 10.19% YoY to ₹24,246 lakh, but net loss widened to ₹4,140.09 lakh; consolidated net loss was ₹11,660.11 lakh.

• Capacity expansion coincided with a severe global automotive downturn; priorities shifted to cash conservation, cost reduction, operational efficiency and product-market diversification.

Financial highlights

• Consolidated net sales were ₹226,561.80 lakh vs ₹233,099.64 lakh in FY08; consolidated net loss was ₹11,660.11 lakh vs net profit of ₹1,580.35 lakh.

• Standalone net sales were ₹23,709.54 lakh vs ₹21,413.32 lakh; net loss increased to ₹4,140.09 lakh from ₹1,417.19 lakh.

• Consolidated exceptional items totaled ₹3,825.63 lakh, including goodwill amortisation, Nimonic material loss and workmen redundancy costs.

• Consolidated H1 income grew 25% YoY and EBITDA grew 44%; H2 income fell 30% and EBITDA declined to -₹258 million from ₹905 million.

Outlook and guidance

• Recovery was expected to be slow; European markets remained uncertain in H1 FY10, with possible recovery in H2 FY10.

• Priorities included optimizing cash flow, lowering costs and break-even points, and leveraging the integrated India-Europe management team and product range.

• India strategy targeted machining-line utilization above 75%, new-product share of sales rising from 8% to 20%, and non-auto sales above 10%.