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Minda Corporation (MCL)held a conference call on 26 May 2017. MrAshok Minda, Chairman and Group CEO, Mr R Laxman, Group President, Finance, Mr Sanjay Aneja, CFO and other members of management took the queries in the call.
Key Points of the call:
For FY18, the company expects consolidated margin of ~10% assuming there are no
losses in subsidiaries and with rationalisation of employee costs.
Company feels that the impact of demonetisation has normalised across segments. It is seeing increasingdispatches from OEMs post transition to BSâ€IV.
Minda Corp booked orders worth Rs 258 crore in Q4FY17, of which Rs 184 crore was from domestic market and Rs 74 crore was from export markets.
The company received new order for Euro 6 sensors (EGT, EGRT) from M&M of value Rs 100 crore per annum and lifetime value of Rs 500 crore.
The company is in process of finalizing new business with OEMs for EGT/EGRT sensors. They will be of Rs 200 crore per annum value and lifetime value of Rs 1000 crore.
The company aims to increase the export business 3â€4 times by 2020.
During Q4FY17, MCL received export orders worth Rs 48 crore for immobilisers
(lifetime value of Rs 250 crore).
MCL expects the legacy business to clock revenue growth of 12â€15% yoy in FY18.
MCL plans to focus on new product additions in legacy business such as electronic clusters, 2Welectronic locks, bracketless door handles etc as they will be the growth drivers for the company.
MCL foresees higher demand for electronics and advanced products such as
EFI/EMS systems, ABS, EGT/EGRT sensors, connectedcars and soot sensors in coming quarters.
The company has commenced production of interior parts in Q4FY17 for Volkswagen fromMexico plant.
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