Minda Corporation rose 1.92% to Rs 175.40 after its consolidated net profit (from continuing operations) jumped 51.27% to Rs 39.06 crore on a 11.45% surge in revenue from operations to Rs 731.25 crore in Q2 September 2021 over Q2 September 2020.
On a consolidated basis, EBITDA grew 16.06% to Rs 77.30 crore in Q2 FY22 from Rs 66.60 crore in Q2 FY21. EBITDA margin improved to 10.6% in Q2 FY22 as against 10.1% in Q2 FY21. Profit margin rose to 5.3% in Q2 FY22 as compared to 3.9% in Q2 FY21.
Meanwhile, Minda Corporation approved the acquisition of additional 49% equity stake in Minda Stoneridge Instruments (MSIL), a joint venture company wherein Minda Corporation already holds 51% equity shares. Post acquisition, MSIL will become a wholly-owned subsidiary of the company.
Minda Corporation has increased stake in Minda Stoneridge to strengthen its core business. The acquisition will be value accretive for shareholders as financial performance of group will strengthen. Minda Corporation will continue to have perpetual license of all existing technology licenses granted by Stoneridge, Inc and continue Technical Collaboration with Stoneridge Inc for future products. This initiative has been taken in line with its vision to grow in advanced technological products i.e. Sensors & Clusters.
Commenting on the Q2 results, Ashok Minda, the chairman and group chief executive officer (CEO) of Minda Corporation, said, "In the second quarter of FY22, auto industry saw sequential pick up in demand with receding second wave of health pandemic and the growth trend was visible in all the vehicle segments to varying extent. I am pleased to report that we have delivered Revenue from Operations of Rs 7,313 million during the quarter, a robust sequential growth of 11.5% as against Industry de- growth of (2.6%)."
"EBITDA for the second quarter stood at Rs 773 million with double digit EBITDA margin of 10.6% despite higher commodity price and indirect adverse impact of Semiconductor shortage. Our performance is also reflected in the balance sheet position as we are net debt negative and generated free cash flow during the first half of the year. With economy recovering and evolving dynamics in the industry, we remain cautiously optimistic about the times ahead, yet, we remain confident in our abilities and strong product offerings to deliver sustainable profitable growth," Mr Minda added.
On 8 June 2021, Minda Corporation signed joint venture agreement with Infac Elecs co., Republic of Korea. As per the said Joint Venture Agreement, a new entity was incorporated in the name and style of Minda Infac, a Joint Venture Company on 10 August 2021. The joint venture entity is engaged in design, develop, manufacture, install, assemble, produce, conceptualize, test, service, distribute, market, promote, offer and sell (either by wholesale or retail) the Shark Fin Antenna - Micro Pole Antenna, LF Antenna & Switch Assembly, GPS Antenna, Advance Antenna (Products) in the territory, which shall be mutually decided by the parties from time to time. The ratio of shareholding of the Company in the proposed JV is 51% and 49% shall be held by INFAC.
Further, Minda Infac on Monday, 1 November 2021 has approved the allotment of 51% equity shares worth Rs 51,000 to Minda Corporation and 49% equity shares worth Rs 49,000 to Infac Elecs co., Republic of Korea.
Minda Corporation is an automotive component manufacturing company with a pan-India presence and international footprint.
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