CIE Automotive India (532756) Q4 2016 earnings summary

Executive summary

• FY16 marked the shift from financial consolidation to growth through earnings-accretive acquisitions, closer CIE integration and operational improvement; Bill Forge was acquired in October 2016.

• Consolidated revenue was ₹55,245.8 million and net profit ₹1,690.1 million for 12 months; prior figures cover nine months and are not comparable.

Financial highlights

• Consolidated revenue from operations was ₹55,245.8 million versus ₹40,007.2 million; net profit was ₹1,690.1 million versus ₹767.2 million, with periods of 12 and nine months, respectively.

• Consolidated EBIT was ₹3,209.1 million and EBITDA ₹5,534.4 million for FY16; the nine-month FY15 figures were ₹1,510.2 million and ₹3,140.4 million.

• Standalone revenue was ₹18,085.5 million and profit after tax ₹514.5 million for 12 months; prior nine-month figures were ₹13,368.1 million and ₹313.1 million.

• Standalone profit before tax included a ₹90.2 million exceptional charge for the one-time voluntary retirement scheme payment.

• Consolidated EPS was ₹5.01 basic and ₹4.99 diluted, versus ₹2.37 for each measure in the prior nine-month period.

Outlook and guidance

• Phase two targets growth and closer integration with CIE, including export growth, customer diversification, efficiency gains, Bill Forge integration and commercial synergies.

• Germany’s turnaround is underway, with margins targeted at acceptable levels over the next few quarters; continued European operational improvement is a priority.

• Management expected gradual European demand recovery and said operational-efficiency, pricing and workforce actions at MFE were expected to yield results in 2017.

• The strategy includes assessing further acquisitions to reinforce market position, with Southeast Asia identified as an inorganic growth opportunity.