Key Highlights

During the quarter, CIE increased its stake by acquiring 5% more from Mahindra and thus making their stake to 56.3%. Mahindra now holds 13.5% stake in the company.

During June 18 quarter, MCIE India registered a 26% growth in net sales which was above the Indian market growth in auto sector. Margins were at all time high of 15.7% largely driven by higher volumes and improved product mix.

There was a negative exchange rate impact at Bill Forge facility of Rs 9.2 crore (compared to positive impact of Rs 4.7 crore in June 17 quarter).

Optimistic about Indian operations in future and margins looks sustainable.

MCIE Europe saw a 32% growth in net sales which include a positive impact of 15% in sales on account of exchange rate. The margins stood at 14% and was helped by passing on 100 bps of steel cost increases to end customers. The company received 100 bps pass through of higher steel cost from all its customers with effect from 1^st Jan 18 onwards.

Ramp up of Mexico plant and metal Castile Italian plant for caterpillar orders is helping the EU operations. The Italian plant is growing above 40%. The first phase of caterpillar order of EU 50 M is going on and second phase of another EU 25 M order will start after that.

German business is growing at 6% after consolidation as industrial vehicle market is growing in Germany. Al l these are main factors for strong growth in EU.

Talks with customers regarding Trade war. No body expects big impact in next 12 months atleast. But if the war continues then it can have some impact in medium to long term.

Still some more room left for improvement in margins

20 M Euro on full ramp up basis in Lithuania plant. Currently the company has reached around half of its production.

Given the strong momentum seen across the geographies, continues to be optimistic about performance in next quarters.

Cash flow is improving and balance sheet is getting stronger.