Mahindra CIE Automotive Limited - 532756 - Compliances-Certificate under Reg. 74 (5) of SEBI (DP) Regulations, 2018
Pursuant to Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018, please find enclosed herewith the Certificate received from KFin Technologies Private Limited, the Registrar and Share Transfer Agent of the Company for the period from 1st January, 2020 to 31st March, 2020.
Mahindra CIE Automotive Limited - 532756 - Announcement under Regulation 30 (LODR)-Earnings Call Transcript
Pursuant to Regulation 30 read with Para A of Schedule III and Regulation 46(2) the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 and our letter dated 18th April, 2020 in respect of Mahindra CIE Automotive Ltd Q1 CY2020 Earnings Conference Call on 24th April, 2020, please find enclosed herewith transcript of the same
Earnings Call Transcript - Q4FY20 and Full Year for Mahindra CIE Automotive
Conference call between Mahindra CIE Management and Analysts on Q4FY20 and Full Year Results. Listen in to the full transcript Call Participants: Mr. Ander Arenaza Alvarez - CEO Mr. K. Jayaprakash - CFO Mr. Vikas Sinha - Sr. VP, Strategy, Mr. Oroitz Lafuente - Business Controller Introductory Remarks from Vikas Sinha Good afternoon everyone! I welcome all of you on this call. Thank you for being with us in this trying time of the Covid crisis. I hope and wish that all your loved ones are taking care. Before we start with the results, let me take this opportunity to state the Covid is a global humanitarian crisis before anything else and CIE salutes the frontline health workers, policemen and other workers who are risking themselves everyday to keep our life moving when many of us are locked down at our home. Let us now start with the results of MCIE for the First Quarter CY20. I am referring to the presentation that we uploaded yesterday. Key Highlights of the last quarter Significant among the highlight is the fact that our parent CIE automotive has reinforced ownership by acquiring an additional 121,000 shares for MCI from the open market in the last week of Q1CY20 Results for our India business for Q1CY20 are on Page 8. We have managed to keep the EBITDA at 13% which is an improvement despite the sales being lower. Sequentially the rate has come down but margin are up The last fortnight of March was affected badly by the Covid crisis The EBT is Rs 16 million in this quarter but this includes our Rs 413 million of negative extended fluctuations associated with BF Mexico USD loan of $26 million. This is a mark to market and is a exceptional item Our European results for Q1CY20 are shown on Page 9. The sales dropped substantially compared to Q1CY19 on account of the double impact and drop in demand due to Covid -19 and the slowdown in the market for our US, Italy business Labour adjustment measures have already been taken in this quarter and they will provide a cushion in the coming quarters Despite a difficult market situation worldwide, our EBITDA is at 11.7% for Q1CY20 in the consolidated result including India and Europe. In absolute terms, EBITDA is 37% lower compared to Q1CY19 which if you would recall was one of the best quarters MCIE has had I would like to mention again that EBT is at Rs 455 million and includes Rs 413 million in terms of the exceptional item of the negative exchange rate fluctuation associated to BF Mexico USD loan We would like to emphasize that the real life situation is very fluid and evolving rapidly. Therefore any market predictions can be taken as a general guideline, but it could change rapidly depending how the pandemic follows. In general, all agencies are forecasting substantial drop in demand of all segments both in India and Europe Our German and Italian plants have currently restarted but May and June sales are still uncertain. We expect potential recovery in Q3CY20 in India and Q4CY20 in Europe MCIE has started with providing masks and sanitizers while working at the plants, with periodic sanitizing of workspaces Manufacturing Operations shutdown in last fortnight of March 2020, as per applicable local Government directives We are following all government directives regarding employees, incl. contract and temporary workers and suppliers, especially small & medium ones. MCIE will try its best to accommodate the needs of suppliers and employees Due to the prolonged nature of the Covid crisis and the fact that the lockdown is the only available antidote, it is a huge economic crisis. This is an unprecedented situation where both the demand and supply sides are affected. The demand situation is especially challenging during this uncertain time Q1CY20 saw some demand slowdown. Despite the situation, we are confident that MCIE will come out of this to a better position. We have already put in place robust guidelines and systems for the structured restart of operations and subsequent stabilisation once the lockdown ends We have been completely focussed on managing this complex situation. There is a weekly review of the cashflow Teams are also working with customers, understanding demand and delivery scenario CAPEX is being reviewed and only the most urgent and important will be approved Inventory is being drawn down. Outsourced activities being reviewed for insourcing Overtime is being curtailed. All heads of cost including labor cost are being reviewed closely Here I may mention that the European governments are applying aid schemes to substantially reduce the labor cost burden for the next few months Auto industry is an important constituent of European economy and European governments will continue to have an eye on its well being. It is worth pointing out that we have already embarked on a journey of operational improvement in import in India and Europe, pre-covid in the last few months We have been able to improve EBITDA margin in India in Q1CY20 compared sequentially to Q4CY19 ispite of drop in revenue as pointed out earlier Similarly, the trucks and off road markets in Europe has faced a massive drop in volume and they have been able to manage this drop MCIE’s cash position is secure and it has unused working capital limits to be comfortable even if current lockdown is further extended over a much longer period MCIE has a solid debt position. MCIE’s parent CIE Automotive is a global MNC and has a robust system of managing cash repository worldwide CIE itself is secure from financial point of view and so we do not foresee any problem in that scope We believe that MCIE is at a secure position to not only manage this crisis and fallout but we quietly optimistic that we will emerge stronger General Updated from the Call In this situation, we think that the market will consolidate. We hope to be in the winner list and to increase our market share in this situation. We are open to acquiring companies. If the companies meets our requirements and align with our strategy, we will go for those companies First focus area is to get our plants back and running and improve our position with our customers. M&A; will be the second option Movement from China to India, logistic change and supply change in our industry will be reviewed deeply next time. Some of the production can move to India but it's too early to say this. We need some more time to see the real effect from this pandemic Debt level is the same as on December 31, 2019. Essentially some committed capital expenditure had to go through so the debt level is same It is very difficult to answer the production level targeted for May because there is a big uncertainty yet and the customers are changing their plans every week. My expectation is that the market can be between 40-50% of the normal market We don’t foresee any problem in the supply chain till now. We have been managing that and till now there is no issue All our vendors are ready and we are also ready to start with the production. We are willing to start as soon as possible. We have already started gear plant operations. In India, we have got some clearances from the government for some plants and we have already started some production in Rajkot at a lower level. We have produced some medical equipment at our composite plants at Mangaon. Also, we have started Aurangabad plant production. Passenger vehicles will not come back in 2021 and it will take one or two years to come back to the old situation. The tractor sector is expected to go up in 2020 even in this situation. The two wheeler saw a drop in this quarter but less drop than the passenger vehicle and the two wheeler will be one of the winners in the new era. Till 2022, the truck market will not be at the same level as was in 2019. It will take 1-2 years to come back to normal. We think we will have some incremental costs may be coming from additional cleaning services and other services especially in the beginning. But in the mid-term we will train everybody. The cost impact coming from these will be marginal. In Europe, the impact will be close to zero. In India, it can be higher due to the amount of people and increase cleaning procedures in the plant We have continued our committed capex that we planned to launch in 2019 and beginning 2020 and so we continue with that plan. Once the market comes back, we will restart the program so more or less we expect the same capex in the previous year. Full Year Capex - Rs 900 million in the fourth quarter. Capex is subject to the market coming back. In the months of March and May, we have kept both our contract and permanent employees and we have paid them 100% as suggested by the Government. We value our customers and keep them as we need them for the near future. This is our strategy from the company to protect our workers. All Earnings Transcripts Mahindra CIE tanks 5% as profit plunges 86%
The company had posted a consolidated profit of Rs 153.72 crore in the corresponding quarter of previous fiscal. Mahindra CIE Automotive Limited - 532756 - Announcement under Regulation 30 (LODR)-Investor Presentation
Please find enclosed herewith Investor Presentation - Q1 CY2020 Results. Mahindra CIE Automotive Limited - 532756 - Un-Audited Financial Results (Standalone And Consolidated) Of The Company For The Quarter Ended On 31" March, 2020 Along-With Limited Review Report By Statutory Auditors
Pursuant to Regulation 30 and 33 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 as amended from time to time, the Un-audited Financial Results (Standalone and Consolidated) of the Company for the quarter ended on 31st March, 2020 were duly approved by the Board of Directors at their meeting held today i.e., 23rd April, 2020, please find enclosed the same along-with Limited Review Report by Statutory Auditors. Mahindra CIE Automotive Limited - 532756 - Shareholding for the Period Ended March 31, 2020
Mahindra CIE Automotive Ltd has submitted to BSE the Shareholding Pattern for the Period Ended March 31, 2020. For more details, kindly Click here Mahindra CIE Automotive Limited - 532756 - Announcement under Regulation 30 (LODR)-Analyst / Investor Meet - Intimation
Pursuant to Regulation 30 read with Para A of Schedule III and Regulation 46(2) the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 as amended from time to time, please find enclosed herewith the advance intimation of Q1CY20 Results Conference Call on 24th April, 2020.