Minda corporation concall was today at 6:00 pm
Here are the key takeaways 😇
Here are the key takeaways 😇
Business overview
- Auto industry in 3rd quarter saw overall growth.
- The auto companies had the challenges to ramp up the supply but Minda supported all its auto clients.
- Transition to BS 6 helped the company to generate highest ever profit.
- Auto industry in 3rd quarter saw overall growth.
- The auto companies had the challenges to ramp up the supply but Minda supported all its auto clients.
- Transition to BS 6 helped the company to generate highest ever profit.
- Company has announced interim dividend.
- Company is going to give greater focus in electric vehicle space and ESG.
- Company remains committed to the customer by providing best in class technology.
- Company is going to give greater focus in electric vehicle space and ESG.
- Company remains committed to the customer by providing best in class technology.
- Order book remains healthy and is growing QoQ
- Company has designed an intelligent transport system.
- Company has designed an intelligent transport system.
- Company has diversified portfolio and all the largest OEMs are the clients of the company.
- Revenue breakup as per business verticles
Mechatronics: 43%
Plastics and interior: 21%
Information & connected system: 36%
- Revenue breakup as per business verticles
Mechatronics: 43%
Plastics and interior: 21%
Information & connected system: 36%
- In FY20 all the segment fell in the automotive industry
- Volumes were impacted by subdued economic environment and lower consumer sentiment.
- Volumes were impacted by subdued economic environment and lower consumer sentiment.
Business verticals
- Information and connected system: Growth in revenue was supported by higher content increase.
- Lag in RM affected the ebidta margin
- Mechatronics: Favorable impact due to various cost cutting measures
- Information and connected system: Growth in revenue was supported by higher content increase.
- Lag in RM affected the ebidta margin
- Mechatronics: Favorable impact due to various cost cutting measures
Lifetime Order book
- Replacement business: Rs. 11.5k mn
- New business: Rs. 4.9k mn
- Company has booked some great orders from 2 major 2 wheeler company.
- Order book will start getting executed from 15-18 months from now.
- Replacement business: Rs. 11.5k mn
- New business: Rs. 4.9k mn
- Company has booked some great orders from 2 major 2 wheeler company.
- Order book will start getting executed from 15-18 months from now.
- In Wire harness, the lead time is 9 months in other verticle it is a 15-18 months cycle for order execution.
- Aftermarket industry has been growing 20% but the Comapny's growth has been 50% and the margins have been superior than other business verticles-
- Aftermarket industry has been growing 20% but the Comapny's growth has been 50% and the margins have been superior than other business verticles-
Future outlook
- Company is focusing towards cross selling.
- Supply of semiconductor is a serious concern in the automobile market
- Company is outperforming the industry.
- Company is focusing towards cross selling.
- Supply of semiconductor is a serious concern in the automobile market
- Company is outperforming the industry.
Capacity utlization
- Locking system:75%
- Wiring harness: 85%
- For tractors verticle the company is utilizing 100%
- Rest 2-3 vehicle are still recovering
- Locking system:75%
- Wiring harness: 85%
- For tractors verticle the company is utilizing 100%
- Rest 2-3 vehicle are still recovering
PLI scheme
- Company is going to welcome this scheme.
- Scheme is not rolled out in detail yet.
- Company qualifies for the PLI scheme and by next quarter company would be able to answer in detail
- Company is going to welcome this scheme.
- Scheme is not rolled out in detail yet.
- Company qualifies for the PLI scheme and by next quarter company would be able to answer in detail
Capex
- Company has invested Rs. 90 crores
- Some of them would be going for brownfield project and rest would be maintenance capex
- 4% to 6% of revenue would be in capex
- Acquisition: Company is exploring the inorganic opportunities.
- Company has invested Rs. 90 crores
- Some of them would be going for brownfield project and rest would be maintenance capex
- 4% to 6% of revenue would be in capex
- Acquisition: Company is exploring the inorganic opportunities.
Ebidta margin impacts
- Raw material prices is the first impact
- Localization is the second impact
- Productivity is the third impact
- Raw material prices is the first impact
- Localization is the second impact
- Productivity is the third impact
Intelligent transportation system
- Majorly for the public transport.
- It's a one stop solution from mobile app to pc connectivity and digital services
- Majorly for the public transport.
- It's a one stop solution from mobile app to pc connectivity and digital services
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