Cie Automotive India Ltd · NSE:CIEINDIA
Cie Automotive India — Mahindra CIE Automotive — Q4 and FY CY2022 Earnings Presentation
56 slides from Cie Automotive India's earnings presentation, Feb 22, 2023
Slide 1: Exchange filing cover letter
Mahindra CIE Automotive Limited Suite F9D, Grand Hyatt Plaza (Lobby Level), Off Western, Express Highway, Santacruz (E), Mumbai - 400 055, India Tel: +91 22 62411031 Fax: +91 22 62411030 www.mahindracie.com mcie.investors@cie-india.com SEC/2023/034 February 22, 2023 BSE Limited National Stock Exchan
Slide 2: Q4 & Full Year CY2022 Results
Q4 & Full Year CY2022 Results 22 Feb 2023 I MUMBAI
Slide 3: Disclaimer
Mahindra CIE Disclaimer Mahindra CIE Automotive Limited, herein referred to as MCAL 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
Slide 4: Index
Index 1 OVERVIEW 2 Q4 CY2022 RESULTS 3 CY2022 RESULTS 4 BALANCE SHEET, CASH FLOW & OTHER DETAILS 5 STRATEGY AND OPERATIONAL HIGHLIGHTS 6 PERFORMANCE TRENDS 7 MARKET UPDATE 8 SEBI RESULTS 3
Slide 5: Overview
T OVERVIEW CIE Automotive
Slide 6: Overview: Legal Structure
OVERVIEW LEGAL STRUCTURE ▪ CIE increased stake in MCIE from 60.76% to 65.71%, 3rd year consecutively ▪ Mahindra Forgings Europe name changed to CIE Forgings Germany (CFG) ▪ Board Approved Name change of MCIE to CIE Automotive India Limited (CAIL) ▪ Galfor Board approved proposal to find a suitable b
Slide 7: Q4 CY2022 Results
2 Q4 CY2022 RESULTS CIE Automotive
Slide 8: India Q4 CY2022 Results
MCIE INDIA Q4 CY2022 RESULTS FINANCIAL UPDATE MARKET UPDATE (₹ MIO) OCT-DEC 2022 CHANGE OCT-DEC 2021 JUL-SEP 2022 OCT-DEC 2022 OCT-DEC 2022 v/s v/s SALES 13,418 26% 10,678 14,294 OCT-DEC 2021 JUL-SEP 2022 <6T 18.7% -10.3% EBITDA* 2,485 93% 1,286 2,148 MHCV 4.0% -1.0% EBITDA% 18.5% 12.0% 15.0% Tracto
Slide 9: Europe Q4 CY2022 Results
MCIE EUROPE Q4 CY2022 RESULTS FINANCIAL UPDATE MARKET UPDATE (₹ MIO) OCT-DEC 2022* CHANGE OCT-DEC 2021* JUL-SEP 2022* OCT-DEC 2022 OCT-DEC 2022 SALES 7,322 43% 5,105 6,806 v/s v/s OCT-DEC 2021 JUL-SEP 2022 EBITDA 1,062 88% 566 920 <6T 6.6% 18.0% MHCV* -7.6% 13.3% EBITDA% 14.5% 11.1% 13.5% EBIT 834 1
Slide 10: Consolidated Q4 CY2022 Results
MCIE CONSOLIDATED Q4 CY2022 RESULTS FINANCIAL UPDATE (₹ MIO) OCT-DEC 2022* CHANGE OCT-DEC 2021* JUL-SEP 2022* SALES 20,740 31% 15,784 21,101 EBITDA 3,547 92% 1,843 3,068 EBITDA% 17.1% 11.7% 14.5% EBIT 2,777 135% 1,182 2,337 EBIT% 13.4% 7.5% 11.1% EBT 2,702 145% 1,101 2,232 EBT% 13.0% 7.0% 10.6% EBIT
Slide 11: CY2022 Results
3 CY2022 RESULTS CIE Automotive
Slide 12: India CY2022 Results
MCIE INDIA CY2022 RESULTS FINANCIAL UPDATE MARKET UPDATE (₹ MIO) JAN-DEC 2022 CHANGE JAN-DEC 2021 SALES 52,527 29% 40,582 JAN-DEC 2022 v/s JAN-DEC 2021 EBITDA* 8,358 46% 5,737 <6T 23.5% EBITDA% 15.9% 14.1% MHCV 27.4% EBIT* 6,327 61% 3,921 Tractors -2.3% Two Wheelers 3.0% EBIT% 12.0% 9.7% Source: <6T
Slide 13: Europe CY2022 Results
MCIE EUROPE CY2022 RESULTS FINANCIAL UPDATE MARKET UPDATE (₹ MIO) JAN-DEC 2022* CHANGE JAN-DEC 2021* SALES 29,755 27% 23,503 JAN-DEC 2022 EBITDA 4,323 7% 4,036 v/s JAN-DEC 2021 EBITDA% 14.5% 17.2% <6T -1.3% EBIT 3,393 9% 3,119 MHCV* -0.5% EBIT% 11.4% 13.3% Source: IHS Global EBT 3,241 8% 3,005 * MHC
Slide 14: Consolidated CY2022 Results
MCIE CONSOLIDATED CY2022 RESULTS FINANCIAL UPDATE (₹ MIO) JAN-DEC 2022* CHANGE JAN-DEC 2021* SALES 82,283 28% 64,085 EBITDA* 12,682 30% 9,764 EBITDA% 15.4% 15.2% EBIT* 9,719 38% 7.031 EBIT% 11.8% 11.0% EBT* 9,514 42% 6,691 EBT% 11.6% 10.4% PAT* -1,362 -135% 3931 PAT% -1.7% 6.1% (*) CFG discontinued
Slide 15: Note on Discontinued Operations
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. NOTE ON DISCONTINUED OPERATIONS 2 In Septembe
Slide 16: Balance Sheet, Cashflow and Other Details
4 BALANCE SHEET, CASHFLOW AND OTHER DETAILS
Slide 17: Consolidated Balance Sheet as on Dec 2022
MCIE CONSOLIDATED BALANCE SHEET AS ON 31 DEC 2022 Million ₹ 31 DEC 2022 31 DEC 2021 Fixed Assets 56,980 67,357 Net Working Capital -2,764 -1,854 Nett Assets held for Sale 2,608 Total Net Assets 56,824 65,502 Equity 50,988 51,966 Net Financial Debt (*) 1,444 7,813 Others (Net) 4,393 5,724 Total Equit
Slide 18: Consolidated Cash Flow and NFD as on Dec 2022
MCIE CONSOLIDATED - CASH FLOW AND NFD AS ON 31 DEC 2022 (Mn ₹) MCIE EBITDA 12,682 Financial (368) Maintenance CAPEX (1,193) Tax Payment (1,831) OPERATING CASH FLOW 9,290 % EBITDA 73% Growing Capex (3,465) Working Capital Variation 909 Dividend (948) Others 583 FINANCIAL CASH FLOW 6,369 BEGINNING NFD
Slide 19: Other Details
OTHER DETAILS OTHER OPERATING REVENUE, OTHER INCOME AND EXCHANGE RATES For Q4 CY2022 For CY2022 (₹ Mio) INDIA EUROPE CONSOLIDATED INDIA EUROPE CONSOLIDATED Other Operating Revenue 559 1,169 1,728 3,335 1,913 5,248 Other Income 116 128 244 378 206 584 EXCHANGE RATES PERIOD ₹/€ Average for Q4 CY22 83.
Slide 20: Strategy and Operational Highlights
5 STRATEGY AND OPERATIONAL HIGHLIGHTS
Slide 21: CY 2022 Highlights: Key Initiatives
CY 2022 HIGHLIGHTS KEY INITIATIVES OPERATIONAL ▪ New forging & machining line installed by Bill Forge to cater to EV transmission parts, AEL new plant to cater to 4W EV completed ▪ CIE Hosur commissioned a new fuel rail line, the first of its kind in India ▪ Robotic welding capacity increased in Sta
Slide 22: CY 2022 Highlights: New Plants - India
CY 2022 HIGHLIGHTS NEW PLANTS - INDIA RAJKOT UNIT 3 BILL FORGE GEARS CIE HOSUR AURANGABAD 21 AEL
Slide 23: CY 2022 Highlights: Geography and Technology
CY 2022 HIGHLIGHTS GEOGRAPHY AND TECHNOLOGY MAGNETICS 3% 3% COMPOSITES GEARS/ MACHINING COMPOSITES 2% 1% MAGNETICS 6% 37% FORGING 12% CASTINGS 8% CASTINGS GEARS/ MACHINING 12% 19% 20% ALUMINUM STAMPINGS ALUMINUM 12% 22% 78% GEARS/ MACHINING FORGING STAMPINGS 12% FORGING 59% Excluding CIE Forgings Ge
Slide 24: CY 2022 Highlights: Segments and Customers
CY 2022 HIGHLIGHTS SEGMENTS AND CUSTOMERS TECHNOLOGIES END USE SEGMENTS TOP CUSTOMERS • Forging • Aluminum Mahindra, Bajaj, • Stampings 49% CARS + UTILITY VEHICLES + LIGHT Maruti, Tata, Hero, COMMERCIAL VEHICLE • Castings GKN, Nexteer, • Gears/ Machining Hyundai, Kia, Ola • Magnetic Products 23% 20%
Slide 25: CY 2022 Highlights: EV Product Portfolio
CY 2022 HIGHLIGHTS EV PRODUCT PORTFOLIO INVERTER HOUSING MOTOR END COVER INVERTER COVER INVERTER COVER PARKING LOCK GEAR OIL DISTRIBUTOR SLEEVE GROUND & BELOID GEAR Aluminum Aluminum Aluminum Aluminum Gears Gears Gears INVERTER HOUSING MOTOR END COVER INVERTER COVER INVERTER COVER SHAFTS SHAFTS PINI
Slide 26: Strategy, Technology and Human Resources
CY 2022 HIGHLIGHTS STRATEGY, TECHNOLOGY AND HUMAN RESOURCES STRATEGY IMPLEMENTED TECHNOLOGY & MANUFACTURING • Diversify customer base, plant locations & technologies EXCELLENCE • Make operations world class INDUSTRY 4.0: Moving from Static • Investment discipline to Dynamic manufacturing eco system
Slide 27: Performance Trends
6 PERFORMANCE TRENDS CIE Automotive
Slide 28: Revenue and EBITDA for India and Europe
PERFORMANCE TRENDS REVENUE AND EBITDA FOR INDIA AND EUROPE R E V E N U E ( ₹ Mn) EBITDA % 52527 17.2 45284 15.9 41861 40582 13.9 15.2 13.8 14.5 35867 14.1 34162 33429 33798 13.3 31561 30327 29755 27854 11.5 26072 13.5 23503 11.7 12.7 18103 9.8 10.9 16393 8 7.6 CY15 CY16 CY17 CY18 CY19 CY20 CY21* CY2
Slide 29: Key Parameters for MCIE Consolidated
PERFORMANCE TRENDS KEY PARAMETERS FOR MCIE CONSOLIDATED REVENUE EBITDA % ₹ 82,283 Mn 15.4% 1.6X +430 bps ₹ 51,214 Mn 11.1% EBITDA RONA % ₹ 12,682 Mn 2.2X 17.9% +890 bps ₹ 5,672 Mn 9% EBIT FCF/ EBITDA ₹ 9,719 Mn 0.50 CY 22 3.0X CY 16 ₹ 3,209 Mn -0.24 CY 16 includes the payout for Bill Forge Acquisiti
Slide 30: Share Price Indexed from 1st Jan 2015
PERFORMANCE TRENDS SHARE PRICE INDEXED FROM 1ST JAN 2015 MCIE Share Price (₹) Returns over the period PERIOD HIGH LOW MCIE NIFTY 50 INDEX NIFTY AUTO INDEX 6 Month (1st July – 31st Dec 2022) 344.1 229.45 47.8% 14.7% 7.8% 12 Month (1st Jan – 31st Dec 2022) 344.1 166.85 46.9% 4.3% 15.3% 2 Years (1st Ja
Slide 31: Market Update
7 MARKET UPDATE CIE Automotive
Slide 32: India Market: Key Segments Update - Quarterly
INDIA MARKET: KEY SEGMENTS UPDATE - QUARTERLY MARKET PRODUCTION NUMBERS <6T Vehicles** MHCV Tractors Two Wheelers PERIOD Million Units Δ% Units Δ% Units Δ% Units Δ% CY2022 5.12 23.5 381,763 27.4 1,004,976 -2.3 19,537,259 3.0 Q4 CY2022 1.24 18.7 88,398 4.0 224,671 28.7 4,604,786 0.5 Q3 CY2022 1.38 37
Slide 33: Market Outlook - India
MARKET OUTLOOK - INDIA • Passenger Vehicles ₋ Light Vehicles (less than 6 Tons – European Classification) Short Term: IHS forecasts production growth at a 7.4% between CY2022-CY 2023 Long term: IHS forecasts production growth at a CAGR of 2.5% over a period of 2022-2027 • MHCVs: Short Term: IHS* for
Slide 34: Europe Market: Key Segments Update - Quarterly
EUROPE MARKET: KEY SEGMENTS UPDATE - QUARTERLY MARKET PRODUCTION NUMBERS <6T Vehicles MHCV PERIOD Million Units Δ% Units Δ% CY2022 15.35 -1.3 533,296* -0.5 Q4 CY2022 4.16 6.6 142,143 -7.6 Q3 CY2022 3.52 21.1 125,495 18.8 Q2 CY2022 3.85 -5.1 132,013 -4.4 Q1 CY2022 3.82 -18.3 133,645 -3.3 Source: IHS
Slide 35: Market Outlook - Europe
MARKET OUTLOOK - EUROPE • EU – Light Vehicles: ‒ IHS Global has forecasted that the Light Vehicle production will increase in CY23 by 4.7% as compared to CY22 ‒ and will grow at CAGR of 2.3% between CY22 to CY27. • EU – MHCV’s: ‒ IHS Global has forecasted* that the Europe MHCV production will fall i
Slide 36: SEBI Results
8 SEBI RESULTS CIE Automotive
Slide 37: Standalone - Statement of Profit & Loss
MCIE STANDALAONE - STATEMENT OF PROFIT & LOSS Rs. in Million Standalone Quarter Ended Year ended Particulars 31 December, 2022 30 September, 2022 31 December, 2021 31 December, 2022 31 December, 2021 (Refer Note 5) Unaudited (Refer Note 5) Audited Audited I Revenue from operations 11,110 12,084 8,40
Slide 38: Standalone - Statement of Profit & Loss (Cont'd)
MCIE STANDALAONE - STATEMENT OF PROFIT & LOSS (CONT’D) Rs. in M illion Standalone Quarter Ended Year ended Particulars 31 December, 2022 30 September, 2022 31 December, 2021 31 December, 2022 31 December, 2021 (Refer Note 5) Unaudited (Refer Note 5) Audited Audited VII Profit before tax (V-VI) 1,717
Slide 39: Standalone Balance Sheet as on Dec 2022
MCIE STANDALONE BALANCE SHEET as on 31 DEC 2022 Rs. in M illion Standalone Particulars 31 December, 2022 31 December, 2021 Audited Audited I ASSETS 1 NON-CURRENT ASSETS (a) Property, Plant and Equipment 11,457 10,864 (b) Capital Work-in-Progress 416 587 (c) Right-of-use-assets 925 1,026 (d) Goodwill
Slide 40: Standalone Balance Sheet (Cont'd)
MCIE STANDALONE BALANCE SHEET as on 31 DEC 2022 – CONT’D Rs. in M illion Standalone Particulars 31 Dec ember, 2022 31 Dec ember, 2021 Audited Audited II EQUITY AND LIABILITIES 1 EQUITY (a) Equity Share Capital 3,793 3,791 (b) Other Equity 40,918 36,712 44,711 40,503 LIABILITIES 2 NON-CURRENT LIABILI
Slide 41: Standalone - Cash Flow
MCIE STANDALONE – CASH FLOW Rs. in M illion 31 December, 2022 31 December, 2021 Particulars Audited Audited I Cash flows from operating activities Profit before tax 6,334 3,018 Adjustments for: Finance costs 135 122 Interest income (95) (44) Net Gain on sale of investment and change in fair value of
Slide 42: Standalone - Cash Flow (Cont'd)
MCIE STANDALONE – CASH FLOW (CONT’D) Rs. in M illion 31 December, 2022 31 December, 2021 Particulars Audited Audited Net cash flow from operating activities 4,781 2,752 II Cash flows from investing activities Purchase of Property, Plant and Equipment (1,866) (2,097) Purchase of current investments (
Slide 43: Notes to Accounts - Standalone
NOTES TO ACCOUNTS - STANDALONE 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 The Finance
Slide 44: Consolidated - Statement of Profit & Loss
MCIE CONSOLIDATED - STATEMENT OF PROFIT & LOSS Rs. in Million Consolidated Sr. No Particulars Quarter Ended Year ended 31 December, 2022 30 September, 2022 31 December, 2021 31 December, 2022 31 December, 2021 [Refer Note 8] Unaudited [Refer Note 8] Audited Audited Continuing Operations I Revenue fr
Slide 45: Consolidated - Statement of Profit & Loss (Cont'd)
MCIE CONSOLIDATED - STATEMENT OF PROFIT & LOSS (CONT’D) Rs. in Million Consolidated Sr. No Particulars Quarter Ended Year ended 31 December, 2022 30 September, 2022 31 December, 2021 31 December, 2022 31 December, 2021 [Refer Note 8] Unaudited [Refer Note 8] Audited Audited VII Profit before excepti
Slide 46: Consolidated - Statement of Profit & Loss (Cont'd)
MCIE CONSOLIDATED - STATEMENT OF PROFIT & LOSS (CONT’D) Rs. in M illion Consolidated Sr. No Particulars Quarter Ended Year ended 31 December, 2022 30 September, 2022 31 December, 2021 31 December, 2022 31 December, 2021 [Refer Note 8] Unaudited [Refer Note 8] Audited Audited XIII Profit/(loss) for t
Slide 47: Consolidated Balance Sheet as on Dec 2022
MCIE CONSOLIDATED BALANCE SHEET as on 31 DEC 2022 Rs. in M illion Consolidated Particulars 31 December, 2022 31 December, 2021 Audited Audited I ASSETS 1 NON-CURRENT ASSETS (a) Property, Plant and Equipment 26,003 26,772 (b) Capital Work-in-Progress 1,195 1,247 (c) Right-of-use assets 1,134 2,567 (d
Slide 48: Consolidated Balance Sheet (Cont'd)
MCIE CONSOLIDATED BALANCE SHEET as on 31 DEC 2022 Rs. in M illion Consolidated Particulars 31 December, 2022 31 December, 2021 Audited Audited II EQUITY AND LIABILITIES 1 EQUITY (a) Equity Share Capital 3,793 3,791 (b) Other Equity 47,192 48,175 TOTAL EQUITY 50,985 51,966 LIABILITIES 2 NON-CURRENT L
Slide 49: Consolidated - Cash Flow
MCIE CONSOLIDATED – CASH FLOW Rs. in M illion 31 December, 2022 31 December, 2021 Particulars Audited Audited I Cash flows from operating activities Profit before tax For continuing operations 9,514 6,689 For discontinuing operations -8,403 -39 Adjustments for: Finance costs 454 533 Allowances for t
Slide 50: Consolidated - Cash Flow (Cont'd)
MCIE CONSOLIDATED – CASH FLOW (CONT’D) Rs. in M illion 31 December, 2022 31 December, 2021 Particulars Audited Audited II Cash flows from investing activities Purc hase of c urrent investments (net) -1,273 -1,880 Inc ome from M utual Fund - 24 Interest rec eived 130 38 Grant rec eived 300 - Proc eed
Slide 51: Consolidated - Segment Result
MCIE CONSOLIDATED – SEGMENT RESULT Rs. in Million Consolidated Quarter Ended Year ended Particulars 31 December, 2022 30 September, 2022 31 December, 2021 31 December, 2022 31 December, 2021 [Refer Note 8] Unaudited [Refer Note 8] Audited Audited 1 Segment Revenue a) India 14,069 15,429 11,559 56,32
Slide 52: Consolidated - Segment Assets & Liabilities
MCIE CONSOLIDATED – SEGMENT ASSETS & LIABILITIES Rs. in Million Consolidated Quarter Ended Year ended Particulars 31 December, 2022 30 September, 2022 31 December, 2021 31 December, 2022 31 December, 2021 [Refer Note 8] Unaudited [Refer Note 8] Audited Audited 3 Segment Asset a) India 59,478 58,983
Slide 53: Notes to Accounts - Consolidated
NOTES TO ACCOUNTS - CONSOLIDATED 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 Septemb
Slide 54: Notes to Accounts - Consolidated Cont'd
NOTES TO ACCOUNTS – CONSOLIDATED CONT’D … 4 The above results have been reviewed by the Audit Committee and approved by the Board of Directors of the Company at their respective meetings held on 22 February, 2023. 5 a) Exceptional Items for 31 December, 2021 pertains to onetime payment made to emplo
Slide 55: Annexure A - Subsidiaries and Associate Companies
NOTES CONT’D … Annexure A - Subsidiaries forming part of the M ahindra CIE Automotive Limited (M CIE) Group and its Associate Companies S. No. Name of the entity Relationship % of Holding Country of Incorporation 31 December, 2022 1 Stokes Group Limited (SGL) Subsidiary of M CIE 100% UK 2 BF Precisi
Slide 56: Thank You
Mahindra CIlE Thank You mahindracie.com
Mahindra CIE Automotive — Q4 and FY CY2022 Earnings Presentation on 6ix