Shares of CIE Automotive India (formerly known as Mahindra CIE Automotive Limited) registered a new all-time high during Wednesday's trade following a healthy performance in Q2FY24. The company follows January-December financial year.
The company on Tuesday reported a 60% jump in its consolidated net profit to ₹302 crore. In the same period last year, the company recorded a net profit of ₹189 crore.
The revenue from operations during the quarter came in at ₹2,320 crore, a growth of 4.80% from ₹2,098.1 crore in Q2 FY23. The operating profit stood at ₹370 crore, an increase of 21% YoY.
Its other income showed a considerable increase of 620% YoY to ₹108 crore. In the preceding March quarter, the company had reported ₹75 crore in other income. The significant rise in other income boosted the company's net profit.
The revenue from its India business, which accounted for 61% of its revenue in Q2 FY24, grew by 4% YoY to ₹1,440 crore, while the EBITDA margin stood at 14.8%. India's business performance was in line with the market, but the 2Ws market was soft, said brokerage firm Motilal Oswal.
On the other hand, the company's EU business, which accounted for 39% of its total revenues, increased 6% YoY to ₹890 crore. The EBITDA margin came in at 17.8%.
The EU business was primarily hit by a slowdown in Metalcastello due to the US market's evolution. Margin surprised due to stock generation for the summer period (a one-time impact that would be reversed in 3Q), the brokerage added.
Following the company's Q2FY24 performance, the shares opened positively at ₹546 apiece as compared to the previous closing price of ₹530.35 and built up further to record a new historic high of ₹579.75 apiece, up by 9.30%.
However, despite the initial surge, the stock failed to maintain its momentum, and it is currently trading at ₹539.45 with a gain of 1.79%.
CIE Automotive India, part of the Spain-based CIE Automotive Group, is a multi-technology, multi-product automotive component supplier. The company is engaged in the business of manufacturing and supplying engine and chassis-forged components for commercial and passenger vehicles.
Earlier in May, Mahindra & Mahindra sold its entire stake of 3.19% in Mahindra CIE Automotive for ₹543 crore. This resulted in a change in the company name from Mahindra CIE Automotive to CIE Automotive India.
7 analysts polled by MintGenie on average have a 'buy' call on the stock.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of MintGenie.
