CIE Automotive India (532756) Q4 14/15 earnings summary

Executive summary

• FY15 results reflect the merger of multiple Indian and European operations, effective December 10, 2014; FY15 comparisons with FY14 are not like-for-like.

• Financial consolidation and European profitability turnaround were priorities; the next strategy phase was to pursue organic and inorganic growth.

Financial highlights

• Consolidated net revenue from operations was ₹55,699 million vs ₹25,907.7 million in FY14; total revenue was ₹56,128.1 million vs ₹26,035.4 million.

• Consolidated loss after tax was ₹781.6 million vs ₹814.9 million; loss per share was ₹2.42 vs ₹8.88.

• Profit before exceptional items and tax was ₹1,260.1 million vs a loss of ₹613.8 million; exceptional costs of ₹2,261 million drove the FY15 pretax loss to ₹1,000.9 million.

• Standalone total income was ₹16,624.8 million and net profit ₹776.7 million vs ₹3,929.9 million and ₹179.7 million; merger scope makes the comparison non-comparable.

• Consolidated operating cash flow was ₹3,222.6 million; investing cash flow was -₹1,839.9 million and financing cash flow -₹2,936.6 million.

Outlook and guidance

• FY15-17 strategy prioritized financial consolidation; growth, organic and inorganic, was planned from 2017 onward.

• Focus remained on consolidating profitability and cash flow amid economic uncertainty, while evaluating growth opportunities in Asia.

• Indian target segments were expected to grow moderately in FY16; tractor recovery depended on a normal monsoon.

• European commercial vehicle markets were expected to grow at least in H1 FY16, while heavy trucks remained vulnerable to fluctuations.