CIE Automotive India (532756) Q4 10/11 earnings summary

Executive summary

• FY11 recovery in Europe drove consolidated income growth and a return to positive EBITDA; Indian operations faced heat-treatment issues and uneven quarterly margins.

• Consolidated net profit was ₹376.18 lakh, versus a net loss of ₹18,448.74 lakh in FY10; standalone operations recorded a net loss of ₹317.59 lakh.

Financial highlights

• Consolidated net sales were ₹191,789.91 lakh, up from ₹132,742.16 lakh in FY10; standalone total income rose 19% to ₹35,844 lakh.

• Consolidated EBITDA margin was 9%, a positive swing from negative EBITDA in FY10; standalone EBITDA fell to 9% of total income amid operational issues.

• Consolidated net profit of ₹376.18 lakh included net exceptional items of ₹804.13 lakh; standalone loss before tax and prior-period items was ₹317.59 lakh.

• Standalone interest and finance costs declined to ₹1,421.73 lakh from ₹2,987.19 lakh in FY10.

Outlook and guidance

• For FY12, Indian auto segments were expected to grow 10–15%; European operations budgeted 8–10% customer-demand growth.

• Priorities were to sustain European profitability, correct Indian operating inconsistencies, expand machining capacity, and capture cross-selling and production synergies.

• A planned large press investment in India was conditional on improvement in overall financial performance; return on capital employed was targeted above the cost of capital within three years.