New Delhi, India, August 11, 2016 – Minda Corporation Limited (referred to as “Minda Corp” or the “Company”; NSE: MINDACORP, BSE: 538962), a leading automotive component and flagship company of Spark Minda, Ashok Minda Group, announces its Q1 FY2017 results, in accordance with Indian GAAP.
Consolidated Performance Highlights: Q1 FY2016-17 vs. Q1 FY2015-16
• Total Revenue increased by 31.7% Y-o-Y to Rs. 6,954 million
• EBITDA increased by 27.5% Y-o-Y to Rs. 626 million; Margins stood at 9.0%
• Profit after Tax increased by 22.9%
to Rs. 249 million, Margins stood at 3.6%
• Net Debt of Rs. 5,234 million (Q4 FY2016: Rs. 4,548 million)
• Net Debt / Equity ratio of 0.89x (Q4 FY2016: 0.80x)
Commenting on the results, Mr. Ashok Minda, Chairman and Group CEO said
“What sets us apart from many of our peers is our passion to get bigger and better. With the onset of FY2016-17, we began a new journey aimed at diversifying into newer high quality products, adding blue chip customers and entering into exciting new global markets. Not only did we make a highly valuable acquisition of Panalfa Autoelektrik, but also won many new orders from high profile global customers. To cater to one of these orders, we are setting up additional die casting capacity in Pune. Furthermore, we have made significant progress on the construction of our new greenfield plant in Mexico access to one of the most demanding and advanced automotive markets, the U.S. I am particularly pleased with the impending implementation of the Goods & Services Tax (GST). Firstly, the GST would reduce the on-road prices for most kind of automobiles and lead to greater demand for our products. Secondly, a lower tax rate will bring down the price differential between the organized and the unorganized sector firms in case of products in the aftermarket segment helping companies such as Minda Corp gain market share.
The automobile industry is poised for growth in the near term due to factors such as the seventh pay commission payouts, upcoming festival season and a revival in the general economy. Another development unfolding in the automotive sector is increasing focus on automotive safety regulations which is also expected to further support the demand for our products.
We are in the midst of building the Spark Minda Technical Centre in Pune which has state of the art testing & measuring equipment along with advanced engineering and research facilities. In the light of the many technological innovations and advancing customer preferences, the automobile industry globally has many requirements to fulfill. We at Minda Corp are fully committed to identifying and filling these gaps in a way that is most fulfilling for the Company and most value accretive for our shareholders. I look forward to your continued support on this exciting journey.”
Consolidated Financial Overview
About Minda Corporation
Minda Corporation is a leading automotive component and flagship company of Spark Minda, Ashok Minda Group, which was founded in 1958 by Late Shri S. L. Minda. The Company has a diversified product portfolio that encompasses Safety, Security & Restraint Systems; Driver Information & Telematics Systems and Interior Systems for auto OEMs. These products cater to 2/3 wheelers, passenger vehicles, commercial vehicles and after-market.
Strong customer base including key OEMs: Ashok Leyland, Bajaj, BMW, Daimler, Hero MotoCorp, Honda Motorcycle, Mahindra & Mahindra, Maruti Suzuki, Renault Nissan, Tata Motors, TVS Motors, Yamaha and VW Group.
The Company has 32 state of the art manufacturing facilities - India (26), South-East Asia (2), Europe (3) and South America (1) and a representative office in Japan with a workforce of over 10,000.
The turnover of Minda Corporation was Rs. 24,455 Milllion in FY2015-16 with international business accounting for 21% of revenues.