Capitaline

Results 19-May-23

Analysis

Minda Corporation

Sales up 13.38%

For the quarter ending March 2023, consolidated Net sales (including other operating income) of Minda Corporation has increased 13.38% to Rs 1074.55 crore compared to quarter ended Mar 2022. Operating profit margin has declined from 11.37% to 10.88%, leading to 8.53% rise in operating profit to Rs 116.93 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 59.56% to 58.88%. Purchase of finished goods cost fell from 4.02% to 3.84%. Employee cost increased from 14.06% to 15.44%. Other expenses rose from 10.84% to 11.06%.

Other income fell 47.47% to Rs 2.39 crore. PBIDT rose 6.26% to Rs 119.32 crore. Provision for interest rose 58.90% to Rs 11.87 crore. Loan funds rose to Rs 713.16 crore as of 31 March 2023 from Rs 505.98 crore as of 31 March 2022. Inventories rose to Rs 573.27 crore as of 31 March 2023 from Rs 478.88 crore as of 31 March 2022. Sundry debtors were higher at Rs 640.90 crore as of 31 March 2023 compared to Rs 568.80 crore as of 31 March 2022. Cash and bank balance declined from Rs 333.41 crore as of 31 March 2022 to Rs 161.92 crore as of 31 March 2023. Investments rose to Rs 451.14 crore as of 31 March 2023 from Rs 64.18 crore as of 31 March 2022 .

PBDT rose 2.51% to Rs 107.45 crore. Provision for depreciation rose 17.20% to Rs 38.56 crore. Fixed assets increased to Rs 949.72 crore as of 31 March 2023 from Rs 826.57 crore as of 31 March 2022. Intangible assets increased from Rs 92.93 crore to Rs 161.25 crore.

Profit before tax down 4.21% to Rs 68.89 crore. Provision for tax was credit of Rs 55.06 crore, compared to credit of Rs 3.58 crore. Effective tax rate was negative 82.33% compared to negative 4.95%.

Minority interest was nil in both the periods. Net profit attributable to owners of the company increased 60.74% to Rs 121.94 crore.

Equity capital stood at Rs 47.82 crore as of 31 March 2023 to Rs 47.82 crore as of 31 March 2022. Per share face Value remained same at Rs 2.00.

Promoters’ stake was 64.73% as of 31 March 2023 ,compared to 64.73% as of 31 March 2022 .

Full year results analysis.

Net sales (including other operating income) of Minda Corporation has increased 44.50% to Rs 4300.14 crore. Operating profit margin has jumped from 9.90% to 10.73%, leading to 56.67% rise in operating profit to Rs 461.49 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 58.23% to 60.51%. Purchase of finished goods cost fell from 4.63% to 4.28%. Employee cost decreased from 16.01% to 14.46%. Other expenses fell from 11.19% to 10.07%.

Other income fell 34.66% to Rs 15.78 crore. PBIDT rose 49.75% to Rs 477.27 crore. Provision for interest rose 31.72% to Rs 40.74 crore. Loan funds rose to Rs 713.16 crore as of 31 March 2023 from Rs 505.98 crore as of 31 March 2022. Inventories rose to Rs 573.27 crore as of 31 March 2023 from Rs 478.88 crore as of 31 March 2022. Sundry debtors were higher at Rs 640.90 crore as of 31 March 2023 compared to Rs 568.80 crore as of 31 March 2022. Cash and bank balance declined from Rs 333.41 crore as of 31 March 2022 to Rs 161.92 crore as of 31 March 2023. Investments rose to Rs 451.14 crore as of 31 March 2023 from Rs 64.18 crore as of 31 March 2022 .

PBDT rose 51.69% to Rs 436.53 crore. Provision for depreciation rose 23.22% to Rs 138.06 crore. Fixed assets increased to Rs 949.72 crore as of 31 March 2023 from Rs 826.57 crore as of 31 March 2022. Intangible assets increased from Rs 92.93 crore to Rs 161.25 crore.

Profit before tax grew 69.84% to Rs 298.47 crore. Provision for tax was expense of Rs 4.08 crore, compared to Rs 24.04 crore. Effective tax rate was 1.41% compared to 11.13%.

Minority interest was nil in both the periods. Net profit attributable to owners of the company increased 48.27% to Rs 284.50 crore.

Equity capital stood at Rs 47.82 crore as of 31 March 2023 to Rs 47.82 crore as of 31 March 2022. Per share face Value remained same at Rs 2.00.

Promoters’ stake was 64.73% as of 31 March 2023 ,compared to 64.73% as of 31 March 2022 .

Other Highlights

Board recommended Final dividend of Rs 0.80 per equity share, taking the total dividend for the year Rs 1.20 per equity share.

In FY23, India contributed 84% to total revenue, Europe & North America 8% and South East Asia, 8%.

In terms of end market, Commercial vehicles contributed 30% to total revenue in FY23, two/three Wheelers 44%, Passenger Vehicles 14% and After Market 12%.

In terms of business verticals, Mechatronics + AfterMarket contributed 48% to total sales in FY23, information & Connected Systems 36% and MIL 16%.

In FY23, Lockset contributed 26% to total revenue, WH 30%, Clusters 12%, DCD 17%, others 15%.

Management Comments :
Mr. Ashok Minda, Chairman and Group CEO said, “I am delighted to announce that Minda Corporation has achieved a significant revenue increase in FY 22-23, demonstrating a remarkable 45% year-on-year growth with double-digit EBITDA margins. This outstanding performance can be attributed to our strong product portfolio, expanding customer base, and emphasis on product premiumisation. In recognition of our shareholders, the board of directors have recommended Final dividend of 40% on the face value i.e. Rs. 0.80 per equity share, taking the total dividend for the year to 60%, i.e. INR 1.20 per equity share..” As we move forward, we will focus on customer-centricity, driving innovation, and advancing research and development to deliver exceptional value to all our stakeholders.” In FY23, Minda Corporation solidified its position as a top provider of comprehensive solutions in Telematics software and ADAS through strategic technology partnerships with LocoNav and Daesung Eltec. These alliances have placed the company at the forefront of automotive industry advancements, enabling delivery of cutting-edge solutions. With continued focus on technology during the last quarter, the company filed 20 patents, taking the total count of patents to more than 250. The automotive industry exhibited satisfactory performance across various segments. The domestic auto market delivered positive growth, primarily driven by robust urban sales. However, exports continued to face challenges due to global geopolitical factors. Two-wheeler demand remained sluggish due to concerns about affordability and increasing fuel costs. The demand for passenger vehicle remained robust, thanks to a strong order book with OEMs and the introduction of new products. Additionally, government`s accelerated infrastructure spending contributed to an upswing in commercial vehicle demand. The tractor segment experienced a remarkable surge in growth, surpassing expectations with a strong double-digit increase. As FY23 drew to a close, semiconductor supply constraints have eased, and commodity prices have resumed an upward trend after a temporary decline in Q2FY23. However, it is important to acknowledge that a substantial portion of our raw materials are tied to customer indices. As part of its way forward strategy, Minda Corporation is poised to endure growth, owing to its robust fundamentals, commitment to quality, customer-centric approach, and relentless focus on innovation and research and development. The coming FY will witness the company pursuing excellence and surpassing expectations to ensure the delivery of exceptional value to our stakeholders.”

Minda Corporation : Consolidated Results

	Quarter ended			Year ended
Particulars	202303	202203	Var.(%)	202303	202203	Var.(%)
Net Sales (including other operating income)	1,074.55	947.76	13.38	4,300.14	2,975.94	44.50
OPM (%)	10.88	11.37	-49 bps	10.73	9.90	83 bps
OP	116.93	107.74	8.53	461.49	294.56	56.67
Other Inc.	2.39	4.55	-47.47	15.78	24.15	-34.66
PBIDT	119.32	112.29	6.26	477.27	318.71	49.75
Interest	11.87	7.47	58.90	40.74	30.93	31.72
PBDT	107.45	104.82	2.51	436.53	287.78	51.69
Depreciation	38.56	32.9	17.20	138.06	112.04	23.22
PBT	68.89	71.92	-4.21	298.47	175.74	69.84
Share of Profit/(Loss) from Associates	-2.01	0.36	PL	-9.89	7.44	PL
PBT before EO	66.88	72.28	-7.47	288.58	183.18	57.54
EO Income	0	0	-	0	32.74	-
PBT after EO	66.88	72.28	-7.47	288.58	215.92	33.65
Taxation	-55.06	-3.58	-1,437.99	4.08	24.04	-83.03
PAT	121.94	75.86	60.74	284.5	191.88	48.27
Minority Interest (MI)	0	0	-	0	0	-
Net profit	121.94	75.86	60.74	284.5	191.88	48.27
P/(L) from discontinued operations net of tax	0	0	-	0	0	-
Net profit after discontinued operations	121.94	75.86	60.74	284.5	191.88	48.27
EPS (Rs)*	5.10	3.17	60.74	11.90	6.81	74.63

* EPS is on current equity of Rs 47.82 crore, Face value of Rs 2, Excluding extraordinary items.
# EPS is not annualised
bps : Basis points
EO : Extraordinary items
Figures in Rs crore
Source: Capitaline Corporate Database

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