Vitesco Technologies, a global provider of modern drive technologies and electrification has announced its financial results for Q1 CY2023. The company reported revenue of 2.31 billion euro (Rs 20,300 crore), EBIT of 37.1 million euro (Rs 326 crore) as against 47.7 million euro (Rs 413 crore), EBIT margin of 1.6 percent compared to 2.1 percent a year ago. It posted a net loss came of 50.7 million (Rs 445 crore) due to cost restructuring.
Andreas Wolf, CEO, Vitesco Technologies said, “E-mobility is a global megatrend. Sales of electric vehicles are growing enormous across all relevant markets. We recognised this trend early and continue to fully embrace it.”
In January, the company’s reorganised its four business units into two new divisions: Powertrain Solutions and Electrification Solutions. This adjustment allowed Vitesco Technologies to sharpen its strategic focus on electrification to operate more effectively, efficiently, and flexibly in the market for sustainable drive technologies.
The company says given the market-driven build-up of inventories and the ongoing investments related to the order intakes from previous quarters, free cash flow stood at minus 41.1 million euro (Rs 360 crore). The Capital expenditures on property, plant, and equipment and software amounted to 98 million euro (Rs 861 crore).
Werner Volz, CFO, Vitesco Technologies said, “Overall, we can be satisfied with the first quarter of 2023. We are confident that our cost discipline and operational optimisations will help us to achieve our targets for the fiscal year.”
In the first quarter of 2023, Vitesco Technologies’ order intake came to 1.4 billion euro (Rs 12,303 crore) with electrification components accounting for 839 million euro (Rs 7,373 crore). Until today, the total order intake from the electrification business adds up to more than 4 billion euro (Rs 35,152 crore).
Going forward, Vitesco Technologies expects the market environment to be challenging in the second quarter of 2023. Although a slight improvement is anticipated, supply bottlenecks may continue to cause lower production volumes. Anticipated improved material availability and the lifting of Covid-19 restrictions in China are fuelling expectations of a considerable year-on-year improvement in global vehicle production in the second quarter of 2023.
The company says the market outlook and the Group’s full year guidance for 2023 remain unchanged compared with the expectations published at the 2023 annual press conference. As with the assumptions for global vehicle production, all assumptions remain subject to a high degree of uncertainty.
