Mahindra CIE Automotive gains on robust December quarter numbers

Mahindra CIE Automotive shares were trading more than a percent higher in the morning trade on on February 23, a day after it reported strong numbers for the December quarter.

At 10.29 am, shares of Mahindra CIE Automotive were trading at Rs 392 on the National Stock Exchange, up 1.3 percent from the previous close. The stock also tested an intraday high of Rs 399.20.

The company's net profit for the December quarter tripled on year to reach Rs 195 crore on strong operational performance and exceptional gain.

The company recorded an exceptional gain of Rs 37.87 crore for the quarter, a significant improvement from the exceptional loss of Rs 12.8 crore in the same period last year.

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Revenue surged 35 percent to Rs 2,247 crore in the December quarter. Strong operations in India and cost pass-throughs in the EU contributed to revenue growth.

The company's EBITDA margin also expanded by 221 basis points year on year to 13.01 percent in October-December, thanks to lower energy prices.

The positive results prompted brokerage firm bullish outlook from ICICIdirect, which cited the company's success in diversifying its business by introducing electric vehicle-specific components. The move allowed MCIE to attract clients such as Ola Electric, which is now one of its top customers.

The company also won new orders worth over Rs 1,000 crore in 2022 and new electric vehicle orders amounted to around worth Rs 300 crore. The company follows the calendar year as its financial year.