CIEINDIA - CIE Automotive

📊 NSE: CIEINDIA 🏢 Castings & Forgings 📅 Last Updated: 12/13/2025 21:04

💰 Financial Performance

Revenue Growth by Segment

In CY2024, the India segment grew by 1.9% YoY to INR 6,059 Cr, while the Europe segment saw a 34.7% decline to INR 2,909.8 Cr, primarily due to the divestment of the German forging business. For 9M CY2025, India sales grew 6% YoY to INR 4,393.5 Cr, while Europe sales dropped 3% to INR 2,400 Cr.

Geographic Revenue Split

As of CY2024, India accounts for 67% of total revenue (INR 6,059 Cr) and Europe accounts for 33% (INR 2,909.8 Cr). This reflects a strategic shift toward the Indian market following the exit from German forging operations which previously contributed ~19% of consolidated revenue.

Profitability Margins

Consolidated Net Profit (PAT) for CY2024 was INR 824.8 Cr, a 26.7% decrease from INR 1,125.6 Cr in CY2023. The PAT margin stood at 9.1% in CY2024 compared to 12.1% in CY2023. Standalone PAT margin for 9M CY2025 was 10.7%.

EBITDA Margin

Consolidated Operating Profit Margin (OPM) improved to 15.8% in CY2024 from 15.6% in CY2023. In India, EBITDA margins rose to 17.9% in CY2024 from 16.7% in CY2023 due to internal efficiency plans. 9M CY2025 consolidated EBITDA margin was 16.3%.

Capital Expenditure

The company maintains a disciplined approach with planned annual capital expenditure of INR 500 Cr to INR 600 Cr. This is funded through healthy annual cash accruals exceeding INR 800 Cr, minimizing reliance on external debt.

Credit Rating & Borrowing

ICRA reaffirmed the long-term rating at [ICRA]AA (Stable) and short-term rating at [ICRA]A1+. Interest coverage ratio improved to 18.4x in CY2024 from 13.5x in CY2023, reflecting reduced debt levels and lower finance costs of INR 77.6 Cr (down 27.7% YoY).

⚙️ Operational Drivers

Raw Materials

Key raw materials include steel, aluminum, and iron. Cost of materials consumed in CY2024 was INR 4,647 Cr, representing 51.8% of total revenue.

Import Sources

Not specifically disclosed in available documents, though the company operates manufacturing bases in India, Germany, Italy, and Spain to source and supply locally.

Capacity Expansion

The company is investing in incremental capacity in India to meet optimistic medium-term demand. Specific focus is on expanding the Hosur Forgings plant and aluminum die-casting verticals to improve margins and output.

Raw Material Costs

Raw material costs as a percentage of revenue stood at 51.8% in CY2024 (INR 4,647 Cr). The company uses a pass-through mechanism with customers to mitigate commodity price volatility, though timing lags can impact short-term margins.

Manufacturing Efficiency

Internal efficiency improvement plans in India helped raise EBITDA margins by 120 basis points YoY in CY2024. The company is also implementing Industry 4.0 and digitization to transform the supply chain.

📈 Strategic Growth

Expected Growth Rate

Growth Strategy

Growth will be driven by a 'judicious mix' of organic and inorganic expansion. Key strategies include focusing on the Indian market (which grew 9% in Q3 CY25), expanding the EV component portfolio in Europe, and optimizing the aluminum die-casting vertical. The company targets M&A to fill strategic gaps in technology and customer portfolios.

Products & Services

Forged parts, stamped body panels, iron castings, aluminum die-cast components, gears, magnetic products, and composite parts for passenger vehicles, commercial vehicles, tractors, and two-wheelers.

Brand Portfolio

CIE Automotive India (formerly Mahindra CIE), Bill Forge, Aurangabad Electricals (AEL).

New Products/Services

Focus on developing EV-specific components and aluminum parts to meet the shifting demand from ICE to electric platforms, particularly in the European market where EVs hold a 15% share.

Market Expansion

India is identified as a priority global market for the parent CIE Group. Expansion is focused on increasing wallet share with existing customers and adding new customers in the Indian 2W and PV segments.

Market Share & Ranking

The company consistently outperforms underlying market growth in key segments, maintaining a strong market position in the Indian forging and casting industry.

Strategic Alliances

The company entered into a Share Subscription and Shareholders Agreement (SSSHA) via its subsidiary CIE Aluminium Casting India Limited in June 2025.

🌍 External Factors

Industry Trends

The industry is shifting toward EVs and lightweighting (aluminum). Europe is seeing a consolidation of the supply chain, while India remains a high-growth market for ICE and hybrid vehicles.

Competitive Landscape

Competes with global and domestic forging/casting players. Competitive advantage is derived from being part of the global CIE Automotive group, allowing for rapid technology transfer.

Competitive Moat

Moat is built on 'CIE's global technological expertise' and established relationships with global OEMs. This is sustainable due to the high capital intensity and technical requirements of forging and casting.

Macro Economic Sensitivity

Highly sensitive to European automotive demand, which saw negative growth in 2024. India operations are sensitive to domestic tractor and two-wheeler cycles.

Consumer Behavior

Shift toward electric vehicles in Europe (15% market share) is forcing a transition in product mix toward EV-compatible components.

Geopolitical Risks

Trade barriers and the threat of Chinese imports in the European market are identified as persistent risks to the competitive landscape.

⚖️ Regulatory & Governance

Industry Regulations

Implementation of the new labour code in India may increase minimum wages, potentially impacting margins. European operations must comply with stringent carbon emission norms affecting the automotive supply chain.