Mahindra CIE Automotive Q1 Review -  Strong Performance Amid Challenges: ICICI Securities
A worker collects parts to use as he assembles sports utility vehicle at the company’s factory in Pune. (Photographer: Dhiraj Singh/Bloomberg)

Mahindra CIE Automotive Q1 Review - Strong Performance Amid Challenges: ICICI Securities

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 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.

Click on the attachment to read the full report:

ICICI Securities Mahindra CIE Q1CY21 Results Update.pdf

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