Ashok Minda Chairman and Group CEO of the company addressed the call.

Highlights of the call:

It was a challenging quarter for the auto industry and so for the company too.

The de-growth trend which started in H2 FY19 in certain segments is now visible across all the segments in the Q1 FY20 for Automobile industry.

Q1 FY20 production volumes decreased 10.8%. All vehicle categories were on a declining trend.

Tractors fell 20.6%, Commercial Vehicles fell 14.5%, Passenger Vehicles fell 12.0% 3-Wheelers fell 11.6% and 2-Wheelers fell 10.1%.

Sales volumes were impacted due to subdued economic environment, low consumer sentiment, tightening of finance availability due to NBFC problems and delayed monsoon.

Minda Corporation received NCLT order for merger of five domestic wholly owned subsidiary companies. This might probably be the fastest NCLT approval received for the company of its size.

Unified entity will benefit from efficiencies of scale along with simplification of corporate structure.

The merger would result in simplification of corporate structure and a larger standalone entity.

Merger will bring better governance, accountability and efficiency in the system.

The merger will lead to cost optimization, efficient treasury management and better value proposition to all the stakeholders

Revenue size of the standalone entity will increase two-fold, post merger.

Based on FY 2019 numbers, largest contribution will come from Minda Sai (Rs 1032 crore) followed by Minda Automotive Solutions (Rs 295 crore), Minda Autoelektrik (Rs 124 crore) and Minda Management Services (Rs 39.9 crore).

Amalgamation of the Transferor Companies into and with the Minda Corp will result in consolidation of the businesses, resulting in managerial efficiencies & higher transparency, synergies among business, access to wider financial resources and lowering of cost structure.

All assets and liabilities of the transferor companies will be transferred to Minda Corp at book value, as of April 01, 2018.

Merger is equity neutral. No new equity shares will be required to be issued as Transferor Companies are wholly owned subsidiary companies.

Some of its customers are Ashok Leyland, Bajaj Auto, CNH, Daimler, Hero Moto Corp, , Honda Motorcycle and Scooter India, Hyundai, Mahindra & Mahindra, Maruti Suzuki etc.

Indian operation revenue grew 0.9% out performing the market.

Can't rejoice too much because the prices of commodities have fallen as it has to pass on the same albeit with a time lag.

It is working to reduce working capital days.

Have cut down on capex which wont impact customer delivery timeline. This will improve cash flows.

The company has not given salary hikes to management level.

PAT margins fell from 4.6% to 3.0% largely due adverse profitability of Minda KTSN, Lower share of profits from JV and higher depreciation and Tax rate.

KTSN did not perform well because of slowdown of new launches by OEMs. Tooling business did not do well. Tooling business is a challenging phase and it will take time to recover.

In Mechatronics and AfterMarket business sales growth was supported by higher exports. EBITDA margin improved due to reduction in raw material cost

Q2 has been worse than Q1 so far.

Pressure is coming more from CV with respect to the company's business. Pressure in 2 wheeler business is less with respect to the company because the OEM's it supplies have fallen less than the industry.

Inorganic activity has increased but the company has not finalized. It is now looking at reducing the asking price due to the subdued environment.

Plastics & Interiors business was impacted by sharp fall in tooling sales, as compared to Q1FY19. This business will be challenging for the whole year.

Diecast sales grew by 28% to Rs 75 crore due to increase in exports. Exports grew from Rs 11 crore to Rs 29 crore. Domestic diecast sales were up just 1%. The company has added new customers and gained market share in this business.

Sales in Germany were challenging.

The company is relooking at capex expenses. Normal average capex has been in the range of Rs 100-125 crore.

The capex will be reduced in the current year. It will do capex only where it sees some benefit.

Shift from BS IV to BS VI is a big positive for the company. It will gain as and when sales of auto industry grow. When sales of the auto industry grow is anyone's guess.

The company sees big scope for cost reduction in terms of localization.

In Mechatronics order book is of approx. Rs. 430 crore.

Information & Connected Systems order book is Rs 960 crore.

Plastics & Interiors has order book of Rs 35 crore.

Export business received for Die Casting parts is Rs 170 crore.

Exports grew from 6% of sales to 9% in Q1.

The company is exploring opportunity to Increase Export of wiring harness.

The RBI has done its bit by reducing the interest rates. Now it is for the Industry to pass that on.

FY 2020 will be challenging. It will try to maintain profitability by tight cost control. Exports is expected to nullify overall subdued sales growth in FY 2020.