Mahindra CIE Automotive Q2 Review - Continues To Walk The Talk: ICICI Securities
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ICICI Securities Report
Mahindra CIE Automotive Ltd.’s Q2 CY21 results were a beat on consensus expectations driven by strong European performance (ten-quarter high margins:14.1%) even as India business was impacted (revenue down ~17% QoQ) due to Covid-19 lockdowns.
Consolidated sales dropped only ~7% QoQ to Rs 20.4 billion while margins remained resilient at ~14% (down 69 bps QoQ).
Mahindra CIE continues to deliver on its targets which is well reflected in free cash flow improvement trajectory (CY20/H1 CY21: ~Rs 2 billion/1.7 billion respectively), we expect it to clock cumulative FCF of ~Rs 12.5 billion over CY21/22E.
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