BENGALURU (Reuters) – Auto components supplier CIE Automotive India on Tuesday reported a 60% jump in second-quarter profit, boosted by the growth in Indian and European markets.
The unit of Spain’s CIE Automotive 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% of its consolidated segmental revenue for the quarter, grew 5.3% year-on-year, outperforming the Indian business, which grew 4.8%.
However, its Indian business accounted for around 61% of sales, with the European segment amounting for the rest.
The company, which counts Maruti Suzuki, Hero MotoCorp, Mahindra and Mahindra, and Volkswagen among its customers, reported a 4.7% jump in revenue at 23.20 billion rupees, while expenses rose 3.5%.
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% ahead of the results.
($1 = 82.0702 Indian rupees)
(Reporting by Ashish Chandra in Bengaluru; Editing by Sonia Cheema and Varun H K)
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