BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
ICICI Securities Report
Mahindra CIE Automotive Ltd.’s reported stellar Q3 CY21 results driven by strong growth in India performance (revenues up 22.3% QoQ) even as Europe business was impacted by seasonality (revenues down ~15% QoQ).
Consolidated sales grew 21% YoY / 2% QoQ to ~Rs 20 billion while margins remained resilient at ~14% (down 5 basis points QoQ).
Mahindra CIE Automotive continues to deliver on its targets, which is well reflected in free cash flow improvement (CY20/CY21E: ~Rs 2 billion/5.2 billion respectively).
We expect the company to clock cumulative free cash flow of ~Rs 13 billion over CY21-CY22E.
We believe the company’s profit before tax would continue to pivot towards India business (CY17: 45%, CY22E: 58%), which would aid valuations.
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