While extremely poorperformance at the operational level dragged on the company's bottomline, the same would have dropped further if not for big surge in other income. Moderate rise in interest and depreciation charges put further pressure on bottomline.

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.

Commenting on the results, Mr. Ashok Minda, Chairman and Group CEO said: "The year 2017 was outlined with momentous events both in the Indian economyand internationally including the passage of GST, demonetization, volatile eventssuch as Brexit and the elections in the US. Amidst the uncertain environment,Minda Corp performance has been a mixed bag. During the year, we continued our journey of expansion and innovation withsignificant developments at Minda Corp. We inaugurated the new plant at Mexicoand commenced the production of Interior Parts. We also entered into a jointventure with SBHAP, China for the supply of plastic products through Minda KTSN. The setting up of

the third die casting plant in Pune was initiated this year and is expected to double the capacity overthe next three years. We embark on the new fiscal year with optimism and to capitalize onthe huge growth prospects that lie ahead of us."

Quarter Performance

The OPM during the fourth quarter ended March 2017 dropped 330 bps to 4.4% due to increased 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) increased by 870bps to 69.6%. Other expenses (% of sales net of stock) fell 110bps to 12.5%. Employee expenses fell 380 bps at 13.9%.

Thus the operating profit fell 33% to Rs 33.36crore. Other income stood 108% higher at Rs 12.61 crore. After 16% rise in depreciation cost to Rs 21.81 crore and 120% rise in interest cost to Rs 9.15crore, PBT before EO fell 54% to Rs 15.01 crore. There was no EO expense this quarter of Rs 2.26 crore against EO income of Rs 2.23 crore in previous year. Thereafter PBT after EO fell 63% at Rs 12.75 crore. After 50 bps dropin tax rate, tax provision stood 64% lowerat Rs 3.35 crore. Thereafter, net profit stood at Rs 19.08 crore against profit of Rs 26.41 crore in previous corresponding quarter (after adjusting for minority interest and share of profits), a drop of 28%.

Yearly Performance:

The company reported 10%drop in consolidated net profit at Rs 96.08 crore for the year ended March 2017. Net sales of the company rose to Rs 2962 crore for theperiod as compared to Rs 2445crore in the year-ago period, a growth of 21%.

The OPM during the yearfell by 240 bps to 6.7% due to increased raw material expenses cum purchase of stock in trade and employee expenses. Raw material cost cum purchase of stock in trade (as a % to sales, net of stock) rose by 340 bps to 64.9%. Other expenses (% of sales net of stock) fell 13bps to 12.4%. Employee expenses fell 70 bps to 16.2%.

Margins were also impacted due to initial expenses towards strategicinvestments in expansion projects such as the Mexico plant and Spark Minda Technical Centre (Pune).

Thus the operating profit fell 11% to Rs 198.1crore. Other income stood at Rs 46.27 crore, higher by 168%. After 14% rise in depreciation cost to Rs 84.72 crore and 23% rise in interest cost to Rs 40.93 crore, PBT before EO fell 11% to Rs 118.7 crore. EO expense stood at Rs 18.21 crore vis a vis EO income of Rs 13.73 crore in FY 15-16. Thereafter PBT after EO fell 32% at Rs 100.49 crore. After 770 bps rise in tax rate, tax provision stood 11% lower at Rs 33.08 crore. Thereafter, net profit stood at Rs 96.08 crore against profit of Rs 107.09 crore in previous year (after adjusting for minority interest and share of profits), a drop of 10%.

Shares of Minda Corporation are trading around Rs 100 currently at BSE.