Mahindra CIE - Q3 FY19 (Standalone & Cons.)
Total Revenue at 614.9 Cr
561.3 Cr (9.35%) YoY | 652.4 Cr (-5.83%) QoQ
Year ending Revenue: 2529.3 Vs. 2063.9 Crs (22.51%)
Year ending Cons Revenue: 8031.5 Vs. 6570.9 Crs (22.21%)
PAT of (89.4) Cr
14.64 Cr (-735.74%) YoY | 42.5 Cr (-311.27%) QoQ
Year ended PAT: 35.5 Vs. 69.2 Crs (-49.57%)
Year ended PAT Cons: 498.1 Vs. 358.3 Crs (39.11%)
EPS (in Rs.) (2.36)
0.39 YoY | 1.12 QoQ
Year ending EPS: 1.83 Vs. 14.48
Year ending EPS Cons: 14.48 Vs. 9.68
View: Average result. YoY standalone revenue up but company has posted losses due to Provision for impairment on additional investment in wholly owned subsidiary Stokes Group amounting to INR 116 Crs to facilitate closure of business. The company doesn’t anticipate any amount to be recovered from their investment. Another loss on sale of investment in Mahindra forgings Europe another wholly owned subsidiary in the tune of INR 12.5 Crs. The total loss booked in the INR 128.5 Crs in current quarter. In consolidated PAT the above amount INR 128.5 Crs has not been shown since these are subsidiary losses. Company geographic segment is India -42%, Europe – 58%. Topline year ending growth for India is 17% and Europe is around 26% which looks good. YoY bottom line EBITDA growth for India is around 58% and Europe is around 31% which also looks impressive. Company is an auto components supplier which includes forgings, castings, stampings, magnetic products and composites. The Company is focused on the automotive market, including cars, utility vehicles, commercial vehicles and tractors. Company ROE and ROCE is around 10% and 11% respectively. Book value per share is INR 98 and share is trading around 2.5 times of its book value. Promoter is holding around 67% in the company and compare to previous quarter its stable but 2% decreased as compare to June 2018 quarter. Company is currently trading at annualized PE of around 15 which is fair as per Industry benchmark. Company overall consolidated operating profit margin is around 12.5% and also stable. Dec 2018 quarter sale of company is not impressive and down in PV and UV segment since Dec 2018 many automobile big player sale number was not impressive, M&M, Maruti and Tata Motors combined constitute more than 50% of MCIE India business. Based on the track record and strong management and automobile sector growth in next 3-4 quarter Investor can continue with the company. Share price high 300 and now 220 almost corrected around 35%.