CIE Automotive India's Q2 profit surges on robust domestic, European demand

CIE Automotive India results: Auto components supplier CIE Automotive India (CIEA.NS) on Tuesday reported a 60 per cent jump in second-quarter profit, boosted by the growth in Indian and European markets. The unit of Spain's CIE Automotive (CIEA.MC) reported a consolidated net profit of 3.02 billion rupees ($36.8 million) for the quarter ended June 30, compared to 1.89 billion rupees a year ago. The quarter saw a sequential uptick in India's two-wheeler sales on improving consumer sentiment across the wedding and festive seasons, while the passenger vehicle volume growth moderated owing to supply chain disruptions, global brokerage Investec said.

The company's European business, which constituted around 49 per cent of its consolidated segmental revenue for the quarter, grew 5.3 per cent year-on-year, outperforming the Indian business, which grew 4.8 per cent. However, its Indian business accounted for around 61 per cent of sales, with the European segment amounting for the rest. The company, which counts Maruti Suzuki (MRTI.NS), Hero MotoCorp (HROM.NS), Mahindra and Mahindra (MAHM.NS), and Volkswagen (VOWG_p.DE) among its customers, reported a 4.7 per cent jump in revenue at 23.20 billion rupees, while expenses rose 3.5 per cent.

Earlier in the quarter, Mahindra divested its entire stake in the company, resulting in a change in the name of the company from Mahindra CIE Automotive to CIE Automotive India. Shares of the company ended down 2 per cent ahead of the results.

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