Conference Call with Management and Analysts of Mahindra CIE Automotive on Q2CY20 Performance and Outlook. Listen to the full earnings transcript.
On the call:
Mr. Ander Arenaza Alvarez, CEO
Mr. K. Jayaprakash, CFO
Mr. Vikas Sinha, Sr. VP, Strategy
Mr. Oroitz Lafuente, Business Controller
Key Highlights
- Sales drop below break even point due to COVID-19 impact.
- April and May heavily affected by the lockdown so the negative EBITDA was generated mainly in that period. June already with positive EBIT
- EBITDA includes 122 mio of positive impact due to AEL mega subsidy
- Restructuring actions already launched to reduce our break even levels
- Customer demand for the following months is improving. If that demand confirms, we will recuperate our profitability soon
H1 CY 2020 negatively affected by:
- Indian market slow down in Q1 due to Bharat Stage VI transition
- Despite the huge and unexpected sales drop the results are not dramatic and, after the restructuring activity deployed, the expectations are positive
- In Europe, we also suffered the negative market trend, worsened by COVID-19 pandemic impact. Strong actions taken to accommodate to new market scenario: 344 mio INR of restructuring cost in H1 2020
- Despite this difficult situation, the EBT (excluding restructuring cost) is positive