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 please see enclosed herewith the advance Intimation of upcoming Investor Relation Interactions as on 13th November, 2018. The same is being uploaded on the website of the Company i.e. www.mahindracie.com. Announcement under Regulation 30 (LODR)-Diversification / Disinvestment
Update on Transfer of investment held in Mahindra Forgings Europe AG to CIE Galfor S. A
Automotive manufacturer Mahindra CIE prepares for growth as market moves towards electric vehicles
By Suhani Adilabadkar Mahindra CIE (in 17 stock screeners today) is the Indian arm of the Spanish CIE Automotive Group, a diversified auto-components company with presence across various processes and product lines. The firm is focused on the automotive market in India, spanning commercial and utility vehicles, passenger cars, two wheelers and tractors. MCIE operates through its 11 subsidiaries segregated under three main groups, Mahindra Forgings Europe, Bill Forge and CIE Forgings. The bulk of its 29 plants are in India - twenty of them. The company delivered a robust performance for its September quarter, although closure for two weeks in August impacted numbers. Quick Takes Mahindra CIE came into existence as a joint venture between CIE Automotive and Mahindra Group through a multilayered share swap agreement in June 2013. MCIE operates through its 11 subsidiaries segregated under three main groups, Mahindra Forgings Europe, Bill Forge and CIE Forgings. Robust standalone numbers with Revenue, EBDITA and PAT rising 22%, 37% and 74% YoY respectively in Q3 CY18. 60% of its revenues are derived from European operations and 40% from domestic Indian Market. M&M;, Maruti and Tata Motors, together contribute 50% of its revenues supplying for passenger vehicles, UVs, LCVs and tractors. MCIE employs 5-6% of its revenues for its capex annually. For the current year, FY-18-19, capex stands at Rs. 400 crores. Mahindra CIE reported negative PAT of Rs. 114 crores in 2013 and in five years reported a tripled revenue base and PAT growing more than 400% in 2018. September Quarterly Performance MCIE reported robust standalone numbers with Revenue, EBDITA and PAT rising 22%, 37% and 74% YoY respectively in Q3 CY18. EBDITA Margin at 12.95% expanded 142 basis points YoY whereas Net Profit Margin coming out at 6.52% increased 196 basis points YoY.MCIE India, comprising 40% of the total revenues grew 20% YoY with EBDITA moving at even higher rate of 26% YoY. EBDITA Margin for MCIE India stood at 15.20% expanding 80 basis points YoY. MCIE Europe also moved on similar lines with Sales and EBDITA rising 26% and 22% respectively YoY and EBDITA Margin coming at 12.20% declining 30 basis points YoY and 200 basis points sequentially. MCIE Chairman, Mr. Ander Arenaza Alvarez clarified that lower sequential margins were on account of 2 weeks holiday shutdown in the month of August leading to lesser production and lower margins. As per the top management,margins will normalize in the coming quarters on the back of robust order book and higher plant utilization levels. A Joint Venture built through a multilayered share swap Mahindra CIE came into existence as a joint venture between CIE Automotive and Mahindra Group through a multilayered share swap agreement in June 2013. CIE’s forging business along with Mahindra auto component businesses both listed and unlisted were amalgamated to form Mahindra CIE. CIE acquired 51% whereas Mahindra group settled at 20% for the combined entity. Investor wealth has multiplied seven times or in other words more than 500% in the past 5 years. In the current calendar year, CIE Automotive has increased its stake to 56% and Mahindra group stands at 11.45%. Routine, day to day routine operations are run by CIE automotive as Mahindra CIE constitutes more than 20% of its revenues. For the Indian operations, M&M;, Maruti and Tata Motors, together contribute 50% of its revenues supplying for passenger vehicles, UVs, LCVs and tractors. Whereas commercial vehicles, off-road vehicles, earth-moving vehicles, passenger vehicles and agricultural equipment makers are MCIE Europe’s major customers. On a consolidated basis, the company revenues are reasonably diversified with M&M; and Daimler contributing 10-15% each followed by Renault Nissan providing 5-6% as its top three customers globally. After going through its restructuring and integration exercise till 2017, the company in on the road of high growth as evident from its yearly 2017 numbers as PAT doubled YoY, reaping benefits of operational synergies and enhanced global reach. Future Growth Strategy The European market seems to be slowing down compared to double digit Indian growth momentum in FY17-18. Commercial vehicles, two wheelers, three wheelers and passenger vehicles grew at 20%, 15%, 24% and 9% respectively YoY in FY17-18 and with the EV revolution just round the corner, tighter synergy with the parent company to mobilize new businesses from EV platforms is expected to drive MCIE India and CIE global growth, if internal innovation ramps up to meet the new shifts in the market. The company aims to reverse its revenue sharing proportion in favor of Indian operations to provide 60% of its total revenues in the near future. A clear road map has been laid out to cease inorganic growth route in Europe and focus on Indian operations. Though fast growing Indian auto market will aid in fulfilling this target, the company seems to be ready to expand through acquisitions in India and other parts of Asia. On the European front, organic growth would be targeted and Company Chairman, Ander Arenaza Alvarez expressed optimism that by 2020, Lithuania plant, Italy plant, Bill Forge India and Mexico will be fully ramped up. In fact, MCIE plans to double its Lithuanian plant revenue and achieve growth of 20-25% for its Italian plant with a revenue of 60 Million euros by 2020. As per the company management, redrawn NAFTA agreement which has increased the percentage of local content up to 75% augurs well for Mexico operations. To support this growth drive, MCIE employs 5-6% of its revenues for its capex annually. For the current year, FY-18-19, capex stands at Rs. 400 crores. Mahindra CIE reported negative PAT of Rs. 114 crores in 2013 and in five years reported a tripled revenue base and PAT growing more than 400% in 2018. Corporate Action-Updates on Amalgamation/ Merger / Demerger
We refer to our letter dated September 25, 2018 whereby exchanges were informed about the approval of the Board of Directors of the Company to the Scheme of Merger between Bill Forge Private Limited (Bill Forge) and Mahindra CIE Automotive Limited (MCIE or Company) and their respective shareholders (the Scheme). The said scheme solely provides for merger of a wholly owned subsidiary (i.e. Bill Forge) with the parent company (i.e. MCIE).... Announcement under Regulation 30 (LODR)-Investor Presentation
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 October 11, 2018 in respect of Mahindra CIE Automotive Ltd Q3 CY 2018 Earnings Conference Call, please find enclosed herewith transcript of the same. Announcement under Regulation 30 (LODR)-Investor Presentation
We refer to our letter dated 16t" October, 2018 whereby we had submitted the Investor Presentation on Q3 CY18 Results. We have updated the said presentation with additional information to provide further clarity. There is no change in numbers included as a part of said presentation. We are submitting herewith the Investor Presentation on Q3 CY18 Results with updated information. Proposal To Close Business Of Stokes Group Limited, One Of The Wholly Owned Subsidiary Of The Company
Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirement) Regulations, 2015, we wish to inform you that, the Board of Directors of the Company at its meeting held on 16th October, 2018, reviewed, the Business situation of and the requirement of infusion of additional equity in, Stokes Group Limited (stokes) one of the subsidiaries of the Company. Announcement under Regulation 30 (LODR)-Investor Presentation
Investor Presentation Q3 CY18 Results Announcement under Regulation 30 (LODR)-Change in Directorate
Appointment of Mr. Romesh Kaul as Director (Executive) of the Company Announcement under Regulation 30 (LODR)-Resignation of Director
Resignation of Mr. Antonio Maria Pradera Jauregui as Director of the Company.