Minda Corporation
hosted a conference call on May 19, 2023. In the conference call, the company
was represented by, Mr. Ashok Minda- Chairman and Group CEO, Mr. Aakash Minda-
Executive Director (Finance & Strategy), Mr. Neeraj Mahajan- Group
President, Marketing and Mr. Vinod Raheja- Group CFO.
Key takeaways of the call
In FY23, company
clocked 45% YoY sales growth with double-digit EBITDA margins. This performance
was driven by strong product portfolio, expanding customer base, robust demand
in domestic market and emphasis on product premiumisation.
Company’s margins
improved mainly due Semiconductor supply situation easing out and better
operational efficiencies.
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.
In Q4 FY23, company
filed 20 patents, taking the total count of patents to more than 250.
2W Smart key
continued to gain traction, representing more than 10% of the total 2W lockset
revenue.
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%.
During the
quarter, Company secured large orders for TFT cluster from key PV OEMs in India.
In Q4 FY23,
domestic auto market delivered positive growth, primarily driven by robust
urban sales. However, exports continued to face challenges due to global
geopolitical factors.
In Q4 FY23, on YoY
basis 2W de-grew mainly due to negative rural sentiments on the back of
unseasonal rains and increase in the cost of the vehicle due to rising commodity
prices, fuel price hike and change in regulatory norms.
The demand for
passenger vehicle remained robust, on back of 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.
In Q4FY23 & FY23,
domestic Industry grew 1.7% and 12.5% respectively while Minda Corp grew by
13.4% & 27.0% respectively.
Going forward the
industry growth is expected to remain favorable especially benefiting from
government thrust on capital expenditure, favorable policy initiatives
including the new PLI scheme, foreign trade policies, and the recently
announced gas pricing guidelines.
Total order book
in FY23 was Rs 7789 crore, out of which new business was Rs 4200 crore and Replacement
Business Rs 3589 crore.
In FY23, company Won
Businesses across segment with EV constituting almost 20% of the orders wins.
Management
indicated that semiconductor supply constraints have eased, and commodity
prices have resumed an upward trend after a temporary decline in Q2FY23.
In FY23, Lockset
contributed 26% to total revenue, WH 30%, Clusters 12%, DCD 17%, others 15%.
In Die casting
division, company’s focus is on Niche Products, which are margin accretive.
Capex for FY23
was around Rs 250 crore.
Board recommended
Final dividend of Rs 0.80 per equity share, taking the total dividend for the
year Rs 1.20 per equity share.
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