- 26 Apr 2022
- ICICIdirect Research
Mahindra CIE reports healthy Q1CY22 performance
CIEINDIA - 584 Change: -2.45 (-0.42 %)News: Mahindra CIE reported healthy performance in Q1CY22. On consolidated basis, net sales for the quarter were at ₹ 2,588.4 crore, up 25% QoQ. EBITDA for Q1CY22 was at ₹ 296.9 crore with corresponding EBITDA margins at 11.5%, up 170 bps QoQ primarily tracking higher margins in Indian operation vs. steady performance in European operations. PAT for the quarter stood at ₹ 161.4 crore, up 102% QoQ
Views: Margin recovery in the Indian operations was impressive at 310 bps QoQ to 15.1% while it was steady at 110 bps at European operations at 10.2%. Sequential topline growth for the quarter was, however, led by European operations i.e. up 42% QoQ while Indian operations reported 12.6% sales growth on QoQ basis. We expect the stock to open positive in opening trade tracking improvement in operating margins & profitability.
Impact: Positive