CIE Automotive India Limited — Investor Meet, 25-02-2025: Analysts/Institutional Investor Meet/Con. Call Updates

**Financial Performance:** CIE Automotive reported Q4 consolidated sales of INR 20.3 billion, a decrease of 5% year-over-year, with EBITDA at INR 3.3 billion and a margin of 17.3%, slightly higher than last year’s 17.1%. The Indian segment's sales grew by 4% year-over-year to INR 14.5 billion, with an EBITDA margin of 17%, up from 16.5% the previous year. For the full year, sales were INR 86.3 billion, down 2% year-over-year, but PAT showed resilience with INR 8.3 billion, marking a 3.7% increase when adjusted for previous year's nonrecurring profits.

**Future Outlook and Growth Drivers:** Management expressed optimism about growth in India, anticipating that market conditions will improve, particularly in the EV segment, where they have already secured a significant portion of orders. The company's strategy includes investing in capacity expansion in India while managing margins amidst challenges in Europe.

**Order Book and Operational Updates:** The order book remains robust, with consistent annual generation around 15%-20% of sales. Approximately 25% of new orders in India are for EVs, showcasing a positive trend towards electrification. Management aims to ramp up production to meet heightened demand.

**Analyst Q&A Insights:** Analysts questioned the impact of declining sales in Europe, particularly in commercial vehicles, which have seen significant decreases. Management remains cautious about the European market outlook for the next several quarters but is focused on offsetting these declines with growth in India. There was also a discussion about ongoing delays in orders, with expectations for resolution in the coming months as new business ramps up.

**Market or Regulatory Updates:** The automotive market is experiencing volatility, with ongoing shifts towards EVs facing slower-than-expected adoption rates in Europe.

**Strategic Focus Areas:** Key strategic themes include enhancing operational efficiencies and focusing on the Indian market for growth, balancing risks between geographical segments.

**Investor Insight:** CIE Automotive's financial health and growth potential create a more favorable outlook for a ‘buy’ position, particularly given the company's strategic focus on capitalizing on the Indian automotive market’s growth opportunities while managing European challenges.