 "Mahindra CIE")
Indian auto components supplier Mahindra CIE Automotive Ltd reported a nearly 73% surge in fourth-quarter profit on Tuesday, boosted by strong domestic and European demand.
A subsidiary of Spain's CIE Automotive, Mahindra CIE's consolidated profit was at Rs 279 crore ($34.06 million) in the quarter ended March 31, up from Rs 161 crore a year ago.
Lower commodity costs and pent-up demand supported sales in the Indian auto industry for the year. Pre-buying of vehicles ahead of the implementation of new fuel emission norms from April 1, and strong demand during the festival season also drove sales.
European business of the Mumbai-based company outperformed Indian business by 5.8%. Europe, a key market of the company, clocked revenue at Rs 1,553 crore for the quarter, constituting nearly 51.4% of total revenue.
The revenue from the India segment rose 13.3% to Rs 1,468 crore.
The automotive company, which counts Maruti, Tata- Jaguar Land Rover (JLR) and Renault among its customers, reported revenue at Rs 2,44 crore in the fourth quarter, up from Rs 2,061 crore a year earlier, while expenses jumped 16.7% Meanwhile, Mahindra & Mahindra, the second biggest stakeholder in the Mahindra CIE, sold over 6% stake in Mahindra CIE Automotive last month, bringing its stake in the company to 3.19% from 9.25%.
Shares of Mahindra CIE have risen 4.3% in 2023 versus a 3.2% drop in the Nifty 500 index. The stock closed 1.4% lower on the day ahead of the results.
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