Q2 2025 CIE Automotive India Ltd Earnings Call Transcript
Key Points
- CIE Automotive India Ltd (BOM:532756) reported a 7% year-on-year growth in India business sales for Q2 CY '25, outperforming the weighted average market growth.
- The company has a healthy order book with INR6 billion in new orders in the first half of the year, indicating strong demand and future growth potential.
- The Indian operations maintained a robust EBITDA margin of 17.5%, despite product mix issues.
- The company is actively pursuing new product development and innovation, particularly in complex crankshafts and EV gears, which are expected to drive future growth.
- CIE Automotive India Ltd (BOM:532756) generated operating cash flows amounting to 76% of consolidated EBITDA, demonstrating strong cash flow management.
- European operations faced a 1% year-on-year decline in sales, with a real drop in sales volume of 4% after accounting for exchange rate effects and raw material price drops.
- The European market remains challenging, with expectations of continued weakness in the next two quarters, impacting overall performance.
- The EBITDA margin in Europe was negatively affected by restructuring costs at Metalcastello, reducing it to 12.5% for Q2 CY '25.
- The company faces significant competition in the magnets segment, particularly from China, impacting profitability.
- There is uncertainty regarding tariffs on exports from India, which could affect future growth in the export business.
Ladies and gentlemen, good day, and welcome to the CIE India's Q2 CY '25 results conference call hosted by ICICI Securities Limited. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Ms. Vishakha Maliwal from ICICI Securities Limited. Thank you, and over to you, ma'am.
Thanks, Nidhi. Good afternoon, everyone. Thanks to CIE Automotive India Limited management for giving us the opportunity to host the call. We have here in the call the senior management represented by Mr. Ander Arenaza Ãlvarez, CEO; Mr. K. Jayaprakash, CFO; Mr. Vikas Sinha, Senior VP Strategy; Mr. Oroitz Lafuente, Business Controller; and Mr. Swapnil Soudagar, DGM strategy.
Over to the management to take this ahead. Thank you.
Yeah. Thanks, Vishakha. This is Vikas. I welcome all of you on this call as also Ander, our CEO. I will present CIE India
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