The company held its conference call on 21 Feb 18 which was addressed by Mr. Hemant Luthra Chairman
Key Highlights
CY 17 was an eventful year for Mahindra CIE Automotive (MCA) as the company simplified legal structure eliminating all Mauritius subsidiaries and streamlined its business. Bill Forge acquisition is an eventful one and is bearing all results as what management had planned at the time of acquisition.
New customers namely Ashok Leyland in Stamping and TBK India was added in Gears segment. Sale to Electric Vehicle also commenced in a small way.
Mexico plant of Bill Forge was commercialized and supplies to Ford F Heavy duty flanges got commenced.
Overall, at consolidated level for CY 17, net sales was up by 22% YoY to Rs 6254 crore , EBITA margin at 13.5% and EBIT margin stood at 9%. Significant improvement in EU and strong Bill Forge performance aided the growth.
Bill Forge reported 20% Ebidta margin for CY 17.
There was a one off expenditure of Rs 11 crore in CY 17 apart from EO items of VRS. The one off pertains to some expenditure regarding gram panchayat license in Indian operations.
M&M, Maruti and TM continue to be major clients for MCA India. M&M and TM both accounts for around 40% of total sales each for MCA Indian operations.
CY 17 also shows issues on Germany being resolved. Things getting back on track.
Catterpillar Metalcastello project and LT forge Crankshaft project were two major growth drivers for the EU growth.
Quality issues in Germany resolved
Mexico ramp is happening strong. 50% capacity utilization. Full ramp up by end of CY 18. Expects to double the output in coming times.
Rs 305 crore capex for incurred CY 17 largely from internal accruals.
The company aims to reach Ebit margin of 10% from 9% currently at consolidated level in next couple of years.
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