Minda Corporation
hosted a conference call on Nov 2, 2023. In the conference call, the company
was represented by, Mr. Aakash Minda, Executive Director (Finance &
Strategy), Ms. Pushpa Mani, Lead Investor Relations, and Mr. Vinod Raheja-
Group CFO.
Key takeaways of the call
Q2 FY24 saw
uptick in demand across most segments, mainly driven by improved consumer
sentiments, rising share of business with key customers and increased demand on
the back of festive season. However, Exports continues to be subdued due to
geo-political issues in key geographies.
On the Domestic
front, in Q2 FY24 Industry grew by 0.2% YoY while company grew by 7.1% on the
back of robust domestic demand and premiumisation.
Semiconductor
supplies continued to ease specially on the back of effective supplier
management. Company expect gradual improvement to continue in coming quarters.
In Q2 FY24,
company derived 88% revenue from India; Europe & North America contributed
7% and South East Asia 5%.
In Q2 FY24, 2W/3Ws
contributed 46% to total revenue, Commercial Vehicles 29%, After Market 11%, and
Passenger Vehicles 14%.
In the
two-wheeler segment, sentiments remains relatively favorable in urban areas
while remaining mixed in rural markets, given the excess monsoon in key
western/central markets. However, volume recovery now hinges on rest of the
festive demand.
In Q2 FY24,
growth in PV volumes was driven by rise in demand for SUV-style vehicles, new
launches as well as improved supply. Three-wheeler segment YoY growth is led by
passenger carrier, e-rickshaw and goods carrier.
In Q2 FY24, CVs
growth was supported by increased spending on infrastructure as monsoon started
to recede. Tractor industry would continue to witness healthy retail momentum
in second half given healthy subsidy flow ahead of elections in multiple
states.
Going ahead,
management expects demand to sustain mainly due to gradual recovery in 2W,
strong order booking in PV, longish CV cycle and good festive season demand.
The company
secured marquee orders across the existing and new technology products with
multiple first-time strategic order wins in both ICE and EV segments.
Company secured highest-ever
lifetime orders of more than Rs 6500 crore in H1FY24 with electric vehicles
(EVs) constituting more than 30% of the orders won during the quarter.
In Q2 FY24,
company won order for EV wiring harness from one of India’s largest OEMs for
their top selling EV model.
The company
undertook expansion of capacities and capabilities at Hosur and Greater Noida
wiring harness plants. Both plants underwent capacity enhancement with
installation of advanced production equipment’s.
Company took a
move towards becoming a complete system solution provider in Passenger Vehicle
domain by entering into an agreement for forming a Joint Venture with HCMF (HSIN
Chong Machinery Works) for sunroof and closure technology products for
passenger vehicles.
HCMF is a
Taiwan-based company engaged in various product groups such as Roof Systems,
Comfort Closure Systems and Mechanical & Mechatronic System. This
partnership aims to provide cutting-edge solutions backed by state-of-the-art
futuristic technology.
Company filed six
patents during H1FY24 taking the total No. of patents with the group to 257.
In Q2 FY24,
company won lifetime order worth more than Rs 450 Crore for smart key from one
of the largest 2W OEM for one of their largest selling ICE models. Company also
won Strategic order for Electronic steering column lock from multiple leading
4W OEMs in India and Export.
Company’s inhouse
team designed, developed and innovated product for front row center console.
This will enable it to become complete system solution provider for 4Ws.
During the
quarter, company saw margin improvement on the back of increasing efficiencies,
streamlining fixed costs and component localization initiatives.
In Q2 FY24, in
terms of products Lockset contributed 24% to total revenue, DCD 15%, Clusters
16%, WH 35%, Others 10%.
R&D spend
during the quarter was 3% of total revenue.
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