Mahindra CIE: Margin gains, recovery in Europe biz key for the stock

To derisk the electric vehicle risk in Europe, the company is looking at increasing its market share in crankshafts, non-engine parts such as steering knuckle and aluminium forgings

Led by the India business, auto component maker Mahindra CIE posted better-than-expected operating performance in the December quarter. New customer additions in India and recovery in the European market helped increase consolidated revenues by 14 per cent compared to the year-ago quarter. 

The year-on-year growth has come after six consecutive quarters of decline. While the company ended the calendar year on a strong note, given the 65 per cent fall in revenues in the June quarter, CY20 revenues fell by 23.5 per cent. The company indicated that demand across all segments revived faster than expected in the September quarter and