Mahindra CIE Automotive Q1 Review - Strong Performance Amid Challenges: ICICI Securities
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ICICI Securities Report
Mahindra CIE Automotive Ltd.’s Q1 CY21 operating margins were a beat on consensus expectations driven by faster improvement across Europe and India.
Consolidated sales rose ~30% YoY to Rs 20.8 billion of which India grew 41% at Rs 10.5 billion while Europe grew ~21% at Rs 10.4 billion.
India business clocked seven-quarter high margins at approximately 15.5% (up ~242 basis points) while Europe clocked ten-quarter high margins at 13.9% (up 340 bps).
India profit before tax contribution in Q1 rose to 55% (up 500 bps YoY), although European business is improving, bulk of company’s future profitability would be driven by India business.
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