CIE Automotive India (CIEA.NS) reported a 60% increase in second-quarter profit on Tuesday, owing to growth in the Indian and European markets.
CIE Automotive (CIEA.MC) of Spain recorded a combined net profit of 3.02 billion rupees ($36.8 million) for the fiscal quarter ended June 30, up from 1.89 billion rupees the previous year.
According to global stock broker Investec, India's two-wheeler sales increased sequentially in the third quarter due to improved consumer sentiment during the wedding and festival seasons, but passenger car volume growth moderated due to supply chain disruptions.
The European business, which accounted for over 49% of the company's consolidated segmental revenue for the quarter, climbed 5.3 percent year on year, surpassing the Indian business, which grew 4.8 percent. However, its Indian business accounted for roughly 61% of sales, with the rest coming from the European market. Customers being Hero MotoCorp (HROM.NS), Maruti Suzuki (MRTI.NS), Mahindra & Mahindra (MAHM.NS), and Volkswagen (VOWG_p.DE). Revenue increased by 4.7% to 23.20 billion rupees, while expenses increased by 3.5%.
Earlier in the quarter, Mahindra sold its full stake in the company, which resulted in a name change from Mahindra CIE Automotive to CIE Automotive India. The company's stock closed down 2% ahead of the results.
The overall has resulted in a great increase in CIE Automotive India's Q2 profit.