While goodperformance at the operational level coupled with higher other income and lower tax provision was there at one hand, on the other, higher interest charges put some brake on bottomline growth.

Minda Corporation is one of the largest suppliers of 2-wheeler, 3-wheeler and Off Road vehicles Electronic & Mechanical Security System. The company is a diversified company with a product portfolio encompassing from Mechanical & Electronic Security System, Door System, Electronic Controllers for Electric Vehicles, Plastic Interiors and for Auto OEM's across the Globe. The company also manufactures Die Casting Parts and high class Surface Finishing parts for auto and consumer durable industry. They supply their products to Indian OEM's and exports about 20% of their products to USA, UK, Europe & South East Asia and ASEAN countries. The company is headquartered at Noida.

Quarter Performance

The OPM during the second quarter ended September2016 rose by 90 bps to 10.4% due to decreased raw material expenses cum purchase of stock in trade. Raw material cost cum purchase of stock in trade (as a % to sales, net of stock) fell by 30bps to 62%. Other expenses (% of sales net of stock) fell by 80bps to 11.4%. Employee expenses was steady at 16.07%.

Thus the operating profit rose by 38% to Rs 81.1crore. Other income stood 81% higher at Rs 9.39 crore. After 7% rise in depreciation cost to Rs 20.51 crore and 42% rise in interest cost to Rs 13.9crore, PBT before EO rose 61% to Rs 56 crore. EO income stood 62% lower at Rs 2.31 crore. Thereafter PBT after EO rose 43% at Rs 58.39 crore. After 1150 bps drop in tax rate, tax provision stood 14% lowerat Rs 10.22 crore. Thereafter, net profit stood at Rs 32.02 crore against profit of Rs 29.06 crore in previous corresponding quarter (after adjusting for minority interest and share of profits), a rise of 10%.

Half Year Performance:

The company reported 15% rise in consolidated net profit at Rs 56.9 crore for the first half ended September 2016. Net sales of the company rose to Rs 1477.65 crore for theperiod as compared to Rs 1144.29 crore in the year-ago period, a growth of 29%.

The OPM during the period rose by 20 bps to 9.4% due to decreased raw material expenses cum purchase of stock in trade. Raw material cost cum purchase of stock in trade (as a % to sales, net of stock) fell by 80 bps to 61.5%. Other expenses (% of sales net of stock) fell 25 bps to 12%. Employee expenses rose 70 bps to 16.9%.

Thus the operating profit rose 32% to Rs 139.6crore. Other income stood at Rs 13.44 crore, higher by 65%. After 22% rise in depreciation cost to Rs 41.79 crore and 16% rise in interest cost to Rs 22.8 crore, PBT before EO rose 47% to Rs 88.48 crore. EO income stood 73% lower at Rs 2.31 crore. Thereafter PBT after EO rose 32% at Rs 90.79 crore. After 630 bps drop in tax rate, tax provision stood marginally higher at Rs 18.08 crore. Thereafter, net profit stood at Rs 56.9 crore against profit of Rs 49.3 crore in previous corresponding half (after adjusting for minority interest and share of profits), a rise of 15%.

Shares of Minda Corporation closed 1.9% lower at Rs 103.8 at BSE, the day earnings were announced.