CIE Automotive India (532756) Q4 09/10 earnings summary

Executive summary

• FY10 standalone gross income rose 25% YoY to ₹30,206 lakh; EBITDA before interest, depreciation, exceptional items and tax increased to ₹4,757 lakh from ₹1,149 lakh.

• Consolidated revenue fell to ₹133,429 lakh from ₹224,885 lakh amid a steep European slowdown; consolidated net loss widened to ₹18,449 lakh from ₹11,697 lakh.

• India operations improved profitability and output, while European cost restructuring helped keep consolidated EBITDA margin at -0.7% despite the revenue decline.

Financial highlights

• Standalone net loss was ₹9,473 lakh versus ₹4,140 lakh in FY09; loss before exceptional items, tax and prior-period expenses was ₹381 lakh.

• Consolidated net sales were ₹132,742 lakh versus ₹224,242 lakh; consolidated loss before tax was ₹23,421 lakh versus ₹10,764 lakh.

• Standalone revenue rose 26.7%; EBITDA margin increased to 15.6% from 3% following improvements in rejection rates, yield and productivity.

• Exceptional items were ₹9,019 lakh standalone and ₹3,457 lakh consolidated, materially affecting reported losses.

Outlook and guidance

• FY11 outlook anticipated sustaining recovery in Europe and 10–15% growth across Indian vehicle segments.

• Priorities include restoring European profitability, improving Indian operating performance, expanding machining and non-auto products, and capturing cross-selling and export opportunities.

• Plans included doubling Indian machining capacity and adding at least one large press within three years.