Mahindra CIE Automotive

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Jul 22, 2021 12:07 IST capital market

For quarter ended June 2021, Consolidated net sales (including other operating income) of Mahindra CIE Automotive has increased 177.71% to Rs 2042.48 crore compared to quarter ended June 2020.

Sales of India segment has gone up 253.60% to Rs 949.23 crore (accounting for 46.14% of total sales).  Sales of Europe segment has gone up 135.53% to Rs 1,108.09 crore (accounting for 53.86% of total sales).  Inter-segment sales rose Rs 3.44 crore to Rs 14.84 crore.  

PBIT of India reported profit of Rs 77.08 crore compared to loss of Rs 62.10 crore.  PBIT of Europe reported profit of Rs 105.67 crore compared to loss of Rs 68.17 crore.  

PBIT margin of India segment rose from negative 23.13% to 8.12%.  PBIT margin of Europe segment rose from negative 14.49% to 9.54%.  Overall PBIT margin rose from 17.63% to 8.88%.  

Raw material cost as a % of total sales (net of stock adjustments) increased from 43.27% to 48.05%.   Employee cost decreased from 41.37% to 16.83%.   Other expenses fell from 29.36% to 23.00%.   

Other income fell 35.60% to Rs 11.56 crore.  Provision for interest fell 21.92% to Rs 13.07 crore.  Loan funds declined from Rs 1,553.82 crore as of 30 June 2020 to Rs 1,266.39 crore as of 30 June 2021.  Inventories rose to Rs 1,229.17 crore as of 30 June 2021 from Rs 1,025.64 crore as of 30 June 2020.  Sundry debtors were higher at Rs 928.92 crore as of 30 June 2021 compared to Rs 369.66 crore as of 30 June 2020.  Cash and bank balance rose to Rs 125.85 crore as of 30 June 2021 from Rs 119.20 crore as of 30 June 2020.  Investments declined from Rs 210.98 crore as of 30 June 2020 to Rs 104.66 crore as of 30 June 2021.  

Provision for depreciation rose 71.14% to Rs 88.6 crore.  Fixed assets increased to Rs 3,031.65 crore as of 30 June 2021 from Rs 2,872.85 crore as of 30 June 2020.  Intangible assets increased from Rs 3,665.06 crore to Rs 3,723.88 crore.  

Share of profit/loss were nil in both the periods.  Provision for tax was debit of Rs 33.48 crore, compared to credit of Rs 18.33 crore.  Effective tax rate was 19.73% compared to 12.47%.

Minority interest was nil in both the periods.  

Equity capital increased from Rs 379.01 crore as of 30 June 2020 to Rs 379.03 crore as of 30 June 2021.  Per share face Value remained same at Rs 10.00.  

Promoters stake was 72.19% as of 30 June 2021 ,compared to 69.46% as of 30 June 2020 .  

For year-to-date (YTD) results analysis.

Net sales (including other operating income) of Mahindra CIE Automotive has increased 76.46% to Rs 4231.88 crore.  Sales of India segment has gone up 95.68% to Rs 2,081.23 crore (accounting for 48.81% of total sales).  Sales of Europe segment has gone up 61.56% to Rs 2,183.09 crore (accounting for 51.19% of total sales).  Inter-segment sales rose Rs 16.69 crore to Rs 32.44 crore.  

PBIT of India reported profit of Rs 194.14 crore compared to loss of Rs 9.26 crore.  PBIT of Europe reported profit of Rs 206.53 crore compared to loss of Rs 15.34 crore.  

PBIT margin of India segment rose from negative 0.87% to 9.33%.  PBIT margin of Europe segment rose from negative 1.14% to 9.46%.  Overall PBIT margin rose from 1.02% to 9.40%.  

Operating profit margin has jumped from 3.58% to 12.92%, leading to 536.58% rise in operating profit to Rs 546.63 crore.  Raw material cost as a % of total sales (net of stock adjustments) increased from 44.72% to 47.92%.   Employee cost decreased from 25.68% to 16.49%.   Other expenses fell from 25.93% to 23.13%.   

Other income rose 35.38% to Rs 30.92 crore.  Provision for interest fell 22.07% to Rs 27.26 crore.  Loan funds declined from Rs 1,553.82 crore as of 30 June 2020 to Rs 1,266.39 crore as of 30 June 2021.  Inventories rose to Rs 1,229.17 crore as of 30 June 2021 from Rs 1,025.64 crore as of 30 June 2020.  Sundry debtors were higher at Rs 928.92 crore as of 30 June 2021 compared to Rs 369.66 crore as of 30 June 2020.  Cash and bank balance rose to Rs 125.85 crore as of 30 June 2021 from Rs 119.20 crore as of 30 June 2020.  Investments declined from Rs 210.98 crore as of 30 June 2020 to Rs 104.66 crore as of 30 June 2021.  

Provision for depreciation rose 32.70% to Rs 176.89 crore.  Fixed assets increased to Rs 3,031.65 crore as of 30 June 2021 from Rs 2,872.85 crore as of 30 June 2020.  Intangible assets increased from Rs 3,665.06 crore to Rs 3,723.88 crore.  

Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 227.11 crore, compared to Rs 6.42 crore.  Effective tax rate was 60.82% compared to negative 10.78%.

Minority interest was nil in both the periods.  

Equity capital increased from Rs 379.01 crore as of 30 June 2020 to Rs 379.03 crore as of 30 June 2021.  Per share face Value remained same at Rs 10.00.  

Promoters stake was 72.19% as of 30 June 2021 ,compared to 69.46% as of 30 June 2020 .  

Full year results analysis.

Net sales (including other operating income) of Mahindra CIE Automotive has declined 23.49% to Rs 6050.11 crore.  Sales of India segment has gone down 18.64% to Rs 2,970.43 crore (accounting for 48.77% of total sales).  Sales of Europe segment has gone down 27.65% to Rs 3,120.01 crore (accounting for 51.23% of total sales).  Inter-segment sales came down from Rs 55.30 crore to Rs 40.33 crore.  

Profit before interest, tax and other unallocable items (PBIT) has slumped 63.22% to Rs 250.12 crore.  PBIT of India segment fell 48.24% to Rs 157.72 crore (accounting for 63.06% of total PBIT).  PBIT of Europe segment fell 75.38% to Rs 92.40 crore (accounting for 36.94% of total PBIT).  

PBIT margin of India segment fell from 8.35% to 5.31%.  PBIT margin of Europe segment fell from 8.70% to 2.96%.  Overall PBIT margin fell from 8.54% to 4.11%.  

Operating profit margin has slumped from 12.24% to 8.29%, leading to 48.16% decline in operating profit to Rs 501.63 crore.  Raw material cost as a % of total sales (net of stock adjustments) decreased from 46.80% to 45.23%.   Employee cost increased from 16.73% to 21.30%.   Other expenses rose from 24.09% to 24.99%.   

Other income rose 65.88% to Rs 54.89 crore.  Provision for interest rose 4.94% to Rs 54.85 crore.  Loan funds rose to Rs 1,647.60 crore as of 31 December 2020 from Rs 1,469.12 crore as of 31 December 2019.  Inventories declined from Rs 1,056.57 crore as of 31 December 2019 to Rs 1,006.16 crore as of 31 December 2020.  Sundry debtors were lower at Rs 706.44 crore as of 31 December 2020 compared to Rs 736.81 crore as of 31 December 2019.  Cash and bank balance rose to Rs 238.01 crore as of 31 December 2020 from Rs 149.92 crore as of 31 December 2019.  Investments rose to Rs 233.98 crore as of 31 December 2020 from Rs 95.50 crore as of 31 December 2019 .  

Provision for depreciation fell 3.07% to Rs 306.4 crore.  Fixed assets increased to Rs 2,970.95 crore as of 31 December 2020 from Rs 2,540.40 crore as of 31 December 2019.  Intangible assets increased from Rs 3,557.36 crore to Rs 3,782.68 crore.  

Profit before tax shrink 69.12% to Rs 195.27 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 88.64 crore, compared to Rs 274.06 crore.  Effective tax rate was 45.39% compared to 43.65%.

Minority interest was nil in both the periods.  Net profit attributable to owners of the company decreased 69.86% to Rs 106.63 crore.  

Equity capital stood at Rs 379.01 crore as of 31 December 2020 to Rs 379.01 crore as of 31 December 2019.  Per share face Value remained same at Rs 10.00.  

Promoters stake was 71.61% as of 31 December 2020 ,compared to 67.69% as of 31 December 2019 .  

Cash flow from operating activities decreased to Rs 539.38 crore for year ended December 2020 from Rs 1,027.22 crore for year ended December 2019.  Cash flow used in acquiring fixed assets during the year ended December 2020 stood at Rs 334.30 crore, compared to Rs 423.80 crore during the year ended December 2019.  

Other Highlights

In India, MHCV sales during Q2FY21 grew by 1025.2%, tractors sales grew by 121.1%, two wheelers sales grew by 418.3% and <6T vehicles (include Passenger Vehicles, Utility Vehicles, Vans and Light Commercial Vehicles) grew by 408.2%compared to Q2FY20. Although, the same is not fully comparable, as last years Q1 sales were impacted due to covid related lockdowns.

In India, MHCV sales during H1FY21 grew by 130.9%, tractors sales grew by 78%, two wheelers sales grew by 62.2% and <6T vehicles (include Passenger Vehicles, Utility Vehicles, Vans and Light Commercial Vehicles) grew by 83.3%compared to H1FY20.

Restructuring actions taken by the company in previous year are showing good margin performance.

Companysgrowing capex concentrated mainly in India and Mexico to continue its organic growth strategy.

Europe Highlights

In Q2FY21, MHCV sales grew by 70.4% and <6T vehicles (include Passenger Vehicles, Utility Vehicles, Vans and Light Commercial Vehicles) grew by 89.2%compared to Q2FY20. Although, the same is not fully comparable, as last years Q1 sales were impacted due to covid related lockdowns.

In H1FY21, MHCV sales grew by 38.2% and <6T vehicles (include Passenger Vehicles, Utility Vehicles, Vans and Light Commercial Vehicles) grew by 29.3% compared to H1FY20. Although, the same is not fully comparable, as last years Q1 sales were impacted due to covid related lockdowns.

Company delivered good performance in Europe despite Covid and Semiconductor shortage impacts.

Mahindra CIE Automotive : Consolidated Results

 

2106 (3) 2006 (3) Var (%) 2106 (6) 2006 (6) Var (%) 2012 (12) 1912 (12) Var (%)
Sales 2042.476 735.47 177.71% 4231.876 2398.17 76.46% 6050.11 7907.82 -23.49%
OPM (%) 12.72% -13.09% 2581 bps 12.92% 3.58% 934 bps 8.29% 12.24% -395 bps
OP 259.784 -96.265 LP 546.631 85.942 536.05% 501.633 967.717 -48.16%
Other inc. 11.56 17.95 -35.58% 30.92 22.84 35.40% 54.89 33.09 65.88%
PBIDT 271.35 -78.32 LP 577.55 108.78 430.94% 556.523 1000.807 -44.39%
Interest 13.07 16.74 -21.90% 27.26 34.98 -22.07% 54.85 52.75 3.98%
PBDT 258.27 -95.06 LP 550.29 73.79 645.70% 501.673 948.057 -47.08%
Dep. 88.60 51.77 71.14% 176.89 133.30 32.70% 306.4 316.1 -3.07%
PBT 169.67 -146.83 LP 373.40 -59.50 LP 195.273 631.957 -69.10%
Share of profit/loss from JV 0.00 -0.18 LP 0.00 -0.08 LP 0 0 0.00%
PBT Befor EO 169.67 -147.01 LP 373.40 -59.58 LP 195.273 631.957 -69.10%
Execptional items 0.00 0.00 0.00% 0.00 0.00 0.00% 0 4.58 -100.00%
PBT After EO 169.67 -147.01 LP 373.40 -59.58 LP 195.27 627.38 -68.87%
Total Tax 33.48 -18.33 PL 227.11 6.42 3439.74% 88.64 274.06 -67.66%
PAT 136.20 -128.68 LP 146.29 -65.997 LP 106.633 353.317 -69.82%
Minority Interest 0.00 0.00 0.00% 0.00 0.00 0.00% 0 0 0.00%
Net Profit 136.20 -128.68 LP 146.29 -65.997 LP 106.633 353.317 -69.82%
P/L from discontinued operations 0.00 0.06 LP 0.00 0.06 LP 0.2 0 PL
Net profit after discontinued operations 136.20 -128.74 LP 146.29 -66.05 LP 106.43 353.32 -69.88%
EPS (Rs)* # # # # 2.81 9.39
* EPS is on current equity of Rs 379.03 crore, Face value of Rs. 10 Each
# EPS is not annualised due to seasonality of business
BPS- Basis points
LP: Loss to profit
PL: Profit to Loss
Figures in Rs crore
Source: Capitaline Corporate Database

Mahindra CIE Automotive : Consolidated Segment results

 

Sales % of Total 2106(3) 2106 (3) 2006(3) Var. (%) % of Total 2106(6) 2106 (6) 2006(6) Var. (%) % of Total 2012(12) 2012 (12) 1912(12) Var. (%)
India 46.14% 949.23 268.45 253.60% 48.81% 2081.23 1063.61 96% 48.77% 2970.43 3650.78 -18.64%
Europe 53.86% 1108.09 470.46 135.53% 51.19% 2183.09 1351.25 62% 51.23% 3120.01 4312.34 -27.65%
Total Reportable Segment 2057.32 738.91 178.43% 4264.32 2414.86 77% 6090.44 7963.12 -23.52%
Un allocated 0.00 0.00 0.00% 0 0 0% 0.00 0.00 0.00%
Total 2057.32 738.91 178.43% 4264.32 2414.86 77% 6090.44 7963.12 -23.52%
Less: Inter segment revenues 14.84 3.44 331.33% 32.441 16.692 94% 40.33 55.30 0.00%
Net sales 2042.48 735.47 177.71% 4231.88 2398.17 76% 6050.11 7907.82 -23.49%
PBIT
India 42.18% 77.08 -62.10 -224.13% 48.45% 194.141 -9.259 -2197% 63.06% 157.72 304.74 -48.24%
Europe 57.82% 105.67 -68.17 -255.01% 51.55% 206.525 -15.339 -1446% 36.94% 92.40 375.36 -75.38%
Total 182.75 -130.27 -240.29% 400.666 -24.598 -1729% 250.12 680.10 -63.22%
(Less): Interest 13.07 16.74 -21.92% 27.264 34.983 -22% 54.85 52.27 4.94%
Add: unallocable 0.00 0.00 0.00% 0 0 0% 0.00 0.00 0.00%
PBT 169.67 -147.01 -215.42% 373.40 -59.58 -727% 195.27 627.83 -68.90%
LP: Loss to profit
PL: Profit to Loss
Figures in Rs crore
Source: Capitaline Corporate Database

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