Cie Automotive India Ltd · NSE:CIEINDIA
Cie Automotive India — Q4 CY2023 Earnings Presentation
60 slides from Cie Automotive India's earnings presentation, Feb 19, 2024
Slide 1: Exchange intimation letter for Investor Presentation
SEC/2024/36 19th February, 2024 BSE Limited National Stock Exchange of India Limited Corporate Relationship Department, Corporate Relationship Department, P. J. Towers, Exchange Plaza, 5th Floor, Dalal Street, Fort, Plot No. C/1, G Block, Mumbai - 400 001. Bandra Kurla Complex, Bandra (E), Mumbai –
Slide 2: Q4 & CY2023 Results Investor Update
Q4 & CY2023 RESULTS INVESTOR UPDATE February 2024
Slide 3: Disclaimer
2 Disclaimer CIE Automotive India Limited, herein referred to as ‘CIE India’ provides a wide array of presentations and reports, with the contributions of various professionals. These presentations and reports are for informational purposes and private circulation only and do not constitute a prospe
Slide 4: Index
INDEX 3 1. OVERVIEW 2.1 Q4 CY2023 RESULTS 2.2 CY2023 RESULTS 2.2 BALANCE SHEET, CASH FLOW AND OTHER DETAILS 3. OUR STRATEGY 4. INDUSTRY TRENDS 5. MARKET UPDATE 6. SEBI RESULTS
Slide 5: 1. Overview
~ ee CIE India 1. OVERVIEW
Slide 6: CIE India Overview: Legal Structure
CIE INDIA OVERVIEW 5 LEGAL STRUCTURE AS ON 31 DECEMBER 2023 CIE through it’s subsidiaries 65.71% 100% 100% 99.99% 100% 100% BF Bill Forge CIE CIE Galfor Precision de Mexico Aluminium CIE Hosur S.A. Private S de RL de Casting India Limited Limited* CV Limited 100% 100% 99.96% 100% CIE UAB ClE LT CIE
Slide 7: CIE India Overview: Geography and Technology
CIE INDIA OVERVIEW 6 GEOGRAPHY AND TECHNOLOGY COMPOSITES 3% COMPOSITES MAGNETICS 4% MAGNETICS 2% 1% 6% GEARS/ MACHINING CASTINGS 7% 11% 38% FORGING CASTINGS 11% GEARS/ MACHINING INDIA 18% 67%* 20% ALUMINUM STAMPINGS 11% ALUMINUM CIE INDIA 19% GLOBAL GEARS/ MACHINING 13% 81% STAMPINGS FORGING 54% EUR
Slide 8: CIE India Overview: Plant Locations
CIE INDIA OVERVIEW 7 PLANT LOCATIONS 63% of overall Sales 37% of overall Sales FORGING STAMPING 1 IN PUNE 2 IN KAHNE (PUNE) 4 IN BANGALORE 1 IN NASHIK HARIDWAR 1 IN HARIDWAR 2 IN RUDRAPUR RUDRAPUR 1 IN COIMBATORE 1 IN ZAHEERABAD PANTNAGAR NAGPUR 1 NAGPUR CASTING RAJKOT AURANGABAD 1 IN PUNE NASHIK AL
Slide 9: CIE India Overview: Key Products
CIE INDIA OVERVIEW 8 KEY PRODUCTS FORGINGS ALUMINIUM CRANKSHAFTS CV JOINTS KNUCKLES DIFF CROWNS SPINDLES CRANK CASE PUMP HOUSING TURBO COVER (GDC) BRAKE PANEL GEARS IRON CASTINGS ] FLANGES/ END DIFFERENTIAL TURBINE AXLE HOUSINGS GEARS & SHAFTS E-DRIVE COMPONENTS YOKES CLUTCH HUBS CRANKSHAFTS GEAR CA
Slide 10: 2.1 Q4 CY2023 Results
C CIE India 2.1Q4 CY2023 RESULTS
Slide 11: India Results Q4 CY2023
INDIA RESULTS 10 Q4 CY2023 RESULTS FINANCIAL UPDATE MARKET UPDATE OCT-DEC 2023 V/S OCT-DEC 2023 V/S ₹ million OCT-DEC 2023 OCT-DEC 2022 JUL-SEP 2023 OCT-DEC 2022 JUL-SEP 2023 Sales 13,934 +4% 13,418 14,393 <6T 4.7% -11.4% EBITDA 2,299 -7% 2,485 2,405 MHCV -1.5% -12.3% % EBITDA / Sales 16.5% 18.5% 16
Slide 12: Europe Results Q4 CY2023
EUROPE RESULTS 11 Q4 CY2023 RESULTS FINANCIAL UPDATE MARKET UPDATE OCT-DEC 2023 V/S OCT-DEC 2023 V/S ₹ million OCT-DEC 2023 OCT-DEC 2022* JUL-SEP 2023 OCT-DEC 2022 JUL-SEP 2023 Sales 7,325 0% 7,322 7,262 <6T 7.3% 18.8% EBITDA 1,240 +17% 1,062 1,249 Source: IHS Global % EBITDA / Sales 16.9% 14.5% 17.
Slide 13: Consolidated Results Q4 CY2023
CONSOLIDATED RESULTS 12 Q4 CY2023 RESULTS FINANCIAL UPDATE ₹ MILLION OCT-DEC 2023 OCT-DEC 2022* JUL-SEP 2023 Sales 21,259 +3% 20,740 21,655 EBITDA 3,539 0% 3,547 3,654 % EBITDA / Sales 16.6% 17.1% 16.9% EBIT 2,758 -1% 2,777 2,871 % EBIT / Sales 13.0% 13.4% 13.3% EBT 2,452 -9% 2,702 2,559 % EBT / Sal
Slide 14: 2.2 CY2023 Results
C CIE India 2.2 CY2023 RESULTS
Slide 15: India Results CY2023
INDIA RESULTS 14 CY2023 RESULTS FINANCIAL UPDATE MARKET UPDATE ₹ million JAN-DEC 2023 JAN-DEC 2022 JAN-DEC 2023 V/S JAN-DEC 2022 Sales 55,310 +5% 52,527 <6T 6.4% EBITDA 9,227 +10% 8,358 MHCV 0.1% % EBITDA / Sales 16.7% 15.9% Tractors -2.2% EBIT 7,093 +12% 6,327 2 Wheelers 3.7% % EBIT / Sales 12.8% 1
Slide 16: Europe Results CY2023
EUROPE RESULTS 15 CY2023 RESULTS FINANCIAL UPDATE MARKET UPDATE ₹ million JAN-DEC 2023 JAN-DEC 2022* JAN -DEC 2023 v/s JAN -DEC 2022 Sales 32,811 +10% 29,755 <6T 12.6% EBITDA 5,832 +35% 4,323 Source: IHS Global % EBITDA / Sales 17.8% 14.5% EBIT 4,744 +40% 3,393 % EBIT / Sales 14.5% 11.4% EBT 4,006 +
Slide 17: Consolidated Results CY2023
CONSOLIDATED RESULTS 16 CY2023 RESULTS FINANCIAL UPDATE ₹ million JAN-DEC 2023 JAN-DEC 2022* Sales 88,120 +7% 82,283 EBITDA 15,059 +19% 12,682 % EBITDA / Sales 17.1% 15.4% EBIT 11,837 +22% 9,719 % EBIT / Sales 13.4% 11.8% EBT 10,758 +13% 9,514 % EBT / Sales 12.2% 11.6% PAT 11,251 +926% -1,362 % PAT
Slide 18: 2.3 Balance Sheet, Cashflow and Other Details
2.3 BALANCE SHEET, CASHFLOW AND OTHER DETAILS
Slide 19: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET 18 AS ON 31 DEC 2023 ₹ million 31 DEC 2023 31 DEC 2022 Fixed assets 59,026 56,980 Net Working Capital (3,467) (2,764) Nett Assets held for Sale 0 2,608 TOTAL NET ASSETS 55,559 56,824 Equity 59,880 50,988 Net Financial Debt (8,252) 1,444 Others (net) 3,931 4,393 TOTAL EQUIT
Slide 20: Consolidated Cash Flow and NFD
CONSOLIDATED CASH FLOW AND NFD 19 AS ON 31 DEC 2023 ₹ million 31 DEC 2023 EBITDA 15,059 Financial (1,135) Maintenance CAPEX (1,666) Tax Payment (2,932) OPERATING CASH FLOW 9,326 % EBITDA 62% Growing CAPEX (2,899) Working Capital Variation 703 Cash received from CFG 3,760 Dividend Distribution (948)
Slide 21: Other Details
OTHER DETAILS 20 OTHER OPERATING REVENUE, OTHER INCOME AND EXCHANGE RATES For Q4 CY2023 For CY2023 ₹ million INDIA EUROPE CONSOLIDATED INDIA EUROPE CONSOLIDATED OTHER OPERATING REVENUE 899 245 1,145 3,675 1,008 4,683 OTHER INCOME 125 140 265 443 377 820 EXCHANGE RATES PERIOD ₹/€ Average for Q4 CY202
Slide 22: 3. Our Strategy
Cc CIE India 3. OUR STRATEGY
Slide 23: CIE India Strategy
CIE INDIA STRATEGY 22 UNIQUE APPROACH THAT SETS US APART PRODUCTS AND MARKETS PROCESS & ORGANISATION • Diversify customer base, plant • Focus on continuous locations & technologies improvement in profitability • Make operations world class • Decentralize plant management • Investment discipline • ES
Slide 24: Diversification: Technologies and Segments
DIVERSIFICATION 23 TECHNOLOGIES AND SEGMENTS TECHNOLOGIES END USE SEGMENTS TOP CUSTOMERS Mahindra, Bajaj, Maruti, Tata, CARS + UTILITY VEHICLES + LIGHT 52% Hero, GKN, Nexteer, Hyundai, Kia, Ola Electric, Stellantis, 63% OF COMMERCIAL VEHICLE Brembo OVERALL SALES 21% 18% 9% 50+ Customers MHCV INDIA T
Slide 25: Diversification: Customers
DIVERSIFICATION 24 CUSTOMERS 63% OF OVERALL REVENUE 37% OF OVERALL REVENUE OTHERS OTHERS INDIA EUROPE Sales do not include CFG discontinued operations + Diversified customer portfolio in both geographies + Strong relationships with key anchor customers
Slide 26: Make Operations World Class
MAKE OPERATIONS WORLD CLASS 25 MANUFACTURING EXCELLENCE, DIGITISATION & EMPLOYEE MOTIVATION MANUFACTURING DIGITISATION EMPLOYEE MOTIVATION EXCELLENCE SAFETY – Well-being of • INCREASING LABOUR employees and operational PRODUCTIVITY through INDUSTRY 4.0: Moving excellence are interrelated smart autom
Slide 27: Investment Discipline
INVESTMENT DISCIPLINE 26 BALANCING CAPEX, GROWTH AND PROFITABILITY 5% Investments based on meeting ROI requirements
Slide 28: ESG Focus
ESG FOCUS 27 STANDOUT PROJECTS RENEWABLE ENERGY projects implemented ALTERNATIVE ENERGY Diesel Fuel replaced with BioGas MODULES INSTALLATION ETP /STP Parameters TESTING LAB Inaugarated ICR UNIT POOLING SUB-STATION
Slide 29: Focussed on Profitability
FOCUSSED ON PROFITABILITY 28 PERFORMANCE TRENDS EBIT 13.40% PAT* 11.80% 7976 11.00% 18% 6735 9.00% 65% 4086 283% 1066 CY 20 CY 21 CY 22 CY 23 CY 20 CY 21 CY 22 CY 23 FCF/ EBITDA 73.00% RONA 67.00% 21.30% 62.00% 51.00% 17.90% 11.00% 3.70% CY 20 CY 21 CY 22 CY 23 CY 20 CY 21 CY 22 CY 23 *PAT on contin
Slide 30: Performance Trends: Revenue and EBITDA
PERFORMANCE TRENDS 29 REVENUE AND EBITDA FOR INDIA AND EUROPE R E V E N U E ( ₹ Mn) EBITDA % 55310 52527 45284 41861 40582 17.8 17.2 16.7 35867 15.9 34162 33429 33798 32811 13.9 15.2 31561 30327 29755 13.8 14.5 27854 14.1 26072 13.3 23503 11.5 18103 13.5 11.7 16393 9.8 12.7 10.9 8 7.6 CY15 CY16 CY17
Slide 31: Performance Trends: Share Price
PERFORMANCE TRENDS 30 SHARE PRICE INDEXED FROM 1ST JAN 2015 CIE INDIA Share Price (₹) Returns over the period PERIOD HIGH LOW CIE INDIA NIFTY 50 INDEX NIFTY AUTO INDEX 6 Month (1st July – 31st Dec 2023) 549.45 449.30 -8.7% 13.2% 22.9% 12 Month (1st Jan – 31st Dec 2023) 549.45 335.65 34.5% 19.4% 47.0
Slide 32: 4. Industry Trends
Cc CIE India & 4. INDUSTRY TRENDS
Slide 33: Long Term Trends in Automotive Industry
LONG TERM TRENDS IN AUTOMOTIVE INDUSTRY 32 HOW WE GAIN HOW WE GAIN • LIGHTWEIGHTING will mean more Aluminium Forging, Castings and Composites • Increasing requirement of COMPONENTS WITH HIGH PRECISION DECARBONISATION LIGHTWEIGHTING • ALTERNATIVE ENERGY COMPONENT portfolio required (like for EVs – re
Slide 34: EV Portfolio
EV PORTFOLIO 33 BY APPLICATION AREA MOTOR & GEARBOX ELECTRONIC AREA BATTERY (STRUCTURAL AREA) BATTERY (COOLING AND AUXILIARIES)
Slide 35: 5. Market Update
G CIE India 5. MARKET UPDATE
Slide 36: India Market: Key Segments Update - Quarterly
INDIA MARKET: KEY SEGMENTS UPDATE - QUARTERLY 35 MARKET PRODUCTION NUMBERS <6T Vehicles** MHCV Tractors Two Wheelers PERIOD Million Units Δ% Units Δ% Units Δ% Units Δ% CY 2023 5.44 6.4 386,297 0.1 985,968 -2.2 20,312,955 3.7 Q4 CY 2023 1.29 4.7 84,845 -1.5 195,466 -13.0 5,481,195 19.0 Q3 CY 2023 1.4
Slide 37: Market Outlook: India
MARKET OUTLOOK 36 INDIA • Passenger Vehicles ₋ Light Vehicles (less than 6 Tons – European Classification) Short Term: IHS forecasts production growth at a 3.5% between CY2023-CY 2024 Long term: IHS forecasts production growth at a CAGR of 4.8% over a period of 2023-2028 • MHCVs: Short Term: IHS* fo
Slide 38: Europe Market: Key Segments Update - Quarterly
EUROPE MARKET: KEY SEGMENTS UPDATE - QUARTERLY 37 MARKET PRODUCTION NUMBERS <6T Vehicles PERIOD Million Units Δ% CY 2023 17.3 12.6 Q4 CY 2023 4.48 7.3 Q3 CY 2023 3.77 7.1 Q2 CY 2023 4.51 17.2 Q1 CY 2023 4.54 18.8 Source: IHS Global Δ % - means comparison of Quarter volumes of this calendar year with
Slide 39: Market Outlook: Europe
MARKET OUTLOOK 38 EUROPE • EU – Light Vehicles: ‒ IHS Global has forecasted that the Light Vehicle production will increase in CY24 by -2.8% as compared to CY23 ‒ and will grow at CAGR of -0.3% between CY23 to CY28
Slide 40: 6. SEBI Results
6. SEBI Results
Slide 41: CIE India Standalone - Statement of Profit & Loss
CIE INDIA STANDALAONE - STATEMENT OF PROFIT & LOSS 40 Rs. in M illion Standalone Quarter Ended Year ended Particulars 31 December, 2023 30 September, 2023 31 December, 2022 31 December, 2023 31 December, 2022 (Refer Note 4) Unaudited (Refer Note 4) Audited Audited I Revenue from operations 11,374.63
Slide 42: CIE India Standalone - Statement of Profit & Loss Cont'd
CIE INDIA STANDALAONE - STATEMENT OF PROFIT & LOSS CONT’D 41 Rs. in M illion Standalone Quarter Ended Year ended Particulars 31 December, 2023 30 September, 2023 31 December, 2022 31 December, 2023 31 December, 2022 (Refer Note 4) Unaudited (Refer Note 4) Audited Audited IX Profit after tax (VII-VII
Slide 43: CIE India Standalone Balance Sheet
CIE INDIA STANDALONE BALANCE SHEET as on 31 DEC 2023 42 Rs. in M illion Standalone Particulars 31 December, 2023 31 December, 2022 Audited Audited I ASSETS 1 NON-CURRENT ASSETS (a) Property, Plant and Equipment 12,140.75 11,457.03 (b) Capital Work-in-Progress 371.63 415.54 (c) Right-of-use-assets 84
Slide 44: CIE India Standalone Balance Sheet Cont'd
CIE INDIA STANDALONE BALANCE SHEET as on 31 DEC 2023 – 43 CONT’D Rs. in M illion Standalone Particulars 31 December, 2023 31 December, 2022 Audited Audited II EQUITY AND LIABILITIES 1 EQUITY (a) Equity Share Capital 3,793.62 3,793.18 (b) Other Equity 45,605.76 40,918.30 49,399.38 44,711.48 LIABILITI
Slide 45: CIE India Standalone - Cash Flow
CIE INDIA STANDALONE – CASH FLOW 44 Rs. in M illion 31 December, 2023 31 December, 2022 Particulars Audited Audited I Cash flows from operating activities Profit before tax 7,165.25 6,334.31 Adjustments for: Finance costs 109.83 134.57 Interest Income on financial assets measured at amortised cost.
Slide 46: CAIL Standalone - Cash Flow Cont'd
CAIL STANDALONE – CASH FLOW (CONT’D) 45 Rs. in M illion 31 December, 2023 31 December, 2022 Particulars Audited Audited II Cash flows from investing activities Purchase of Property, Plant and Equipment (2,328.65) (1,866.47) Purchase of current investments (net) (2,259.90) (1,286.27) Proceeds from sa
Slide 47: Notes to Accounts - Standalone
NOTES TO ACCOUNTS - STANDALONE 46 1 The statement has been prepared in accordance with the Companies (Indian Accounting Standards) Rules, 2015 (Ind AS) prescribed under Section 133 of the Companies Act, 2013 and other recognized accounting practices and policies to the extent applicable. 2 Exception
Slide 48: CIE India Consolidated - Statement of Profit & Loss
CIE INDIA CONSOLIDATED - STATEMENT OF PROFIT & LOSS 47 Rs. in M illion Consolidated Quarter Ended Year ended Sr. No Particulars 31 December, 2023 30 September, 2023 31 December, 2022 31 December, 2023 31 December, 2022 [Refer Note 8] Unaudited [Refer Note 8] Audited Audited Continuing Operations I R
Slide 49: CIE India Consolidated - Statement of Profit & Loss Cont'd
CIE INDIA CONSOLIDATED - STATEMENT OF PROFIT & LOSS (CONT’D) 48 Rs. in M illion Consolidated Quarter Ended Year ended Sr. No Particulars 31 December, 2023 30 September, 2023 31 December, 2022 31 December, 2023 31 December, 2022 [Refer Note 8] Unaudited [Refer Note 8] Audited Audited XI Profit after
Slide 50: CIE India Consolidated - Statement of Profit & Loss Cont'd
CIE INDIA CONSOLIDATED - STATEMENT OF PROFIT & LOSS (CONT’D) 49 Rs. in M illion Consolidated Sr. No Particulars Quarter Ended Year ended 31 December, 2023 30 September, 2023 31 December, 2022 31 December, 2023 31 December, 2022 [Refer Note 8] Unaudited [Refer Note 8] Audited Audited XV Total compreh
Slide 51: CIE India Consolidated Balance Sheet
CIE INDIA CONSOLIDATED BALANCE SHEET as on 31 DEC 2023 50 Balance sheet as at 31 December, 2023 Rs. in M illion Consolidated Particulars 31 December, 2023 31 December, 2022 Audited Audited I ASSETS 1 NON-CURRENT ASSETS (a) Property, Plant and Equipment 28,129.41 26,003.22 (b) Capital Work-in-Progres
Slide 52: CIE India Consolidated Balance Sheet Cont'd
CIE INDIA CONSOLIDATED BALANCE SHEET as on 31 DEC 2023 51 (Cont’d) Balance sheet as at 31 December, 2023 Rs. in M illion Consolidated Particulars 31 December, 2023 31 December, 2022 Audited Audited II EQUITY AND LIABILITIES 1 EQUITY (a) Equity Share Capital 3,793.62 3,793.18 (b) Other Equity 56,086.
Slide 53: CIE India Consolidated - Cash Flow
CIE INDIA CONSOLIDATED– CASH FLOW 52 Consolidated Statement of cash flows for the year ended 31 December, 2023 Rs. in M illion 31 December, 2023 31 December, 2022 Particulars Audited Audited I Cash flows from operating activities Profit before tax For continuing operations 10,758.51 9,514.34 For dis
Slide 54: CIE India Consolidated - Cash Flow Cont'd
CIE INDIA CONSOLIDATED– CASH FLOW (Cont’d) 53 Consolidated Statement of cash flows for the year ended 31 December, 2023 Rs. in M illion 31 December, 2023 31 December, 2022 Particulars Audited Audited II Cash flows from investing activities Purchase of current investments (net) (2,213.46) (1,273.34)
Slide 55: CIE India Consolidated - Segment Result
CIE INDIA CONSOLIDATED – SEGMENT RESULT 54 Rs. in M illion Consolidated Quarter Ended Year ended Particulars 31 December, 2023 30 September, 2023 31 December, 2022 31 December, 2023 31 December, 2022 [Refer Note 8] Unaudited [Refer Note 8] Audited Audited 1 Segment Revenue a) India 14,873.21 15,367.
Slide 56: CIE India Consolidated - Segment Result
CIE INDIA CONSOLIDATED – SEGMENT RESULT 55 Rs. in M illion Consolidated Quarter Ended Year ended Particulars 31 December, 2023 30 September, 2023 31 December, 2022 31 December, 2023 31 December, 2022 [Refer Note 8] Unaudited [Refer Note 8] Audited Audited 3 Segment Asset a) India 63,260.23 61,895.15
Slide 57: Notes to Accounts - Consolidated
NOTES TO ACCOUNTS - CONSOLIDATED 56 1 The statement has been prepared in accordance with the Companies (Indian Accounting Standards) Rules, 2015 (Ind AS) prescribed under Section 133 of the Companies Act, 2013 and other recognized accounting practices and policies to the extent applicable. 2 In Sept
Slide 58: Notes to Accounts - Consolidated Cont'd
NOTES TO ACCOUNTS – CONSOLIDATED CONT’D … 57 Brief details of the discontinuing operations are as given under:- Rs. in M illion Quarter Ended Year ended Particulars 31 December, 2023 30 September, 2023 31 December, 2022 31 December, 2023 31 December, 2022 [Refer Note 8] Unaudited [Refer Note 8] Audi
Slide 59: Notes Cont'd: Subsidiaries List
NOTES CONT’D … 58 S. No. Name of the entity Relationship % of Holding Country of Incorporation 31 December, 2023 1 Stokes Group Limited (liquidated on September 05, 2023) Subsidiary of CIE-India - UK 2 BF Precision Private Limited Subsidiary of CIE-India 100% India 3 Bill Forge de M exico S de RL de
Slide 60: Thank You
THANK YOU
CIE Automotive India — Q4 CY2023 Earnings Presentation on 6ix