UNO Minda Limited, a prominent player in the automotive components sector, has announced strategic moves to consolidate its position in the electric vehicle (EV) market and streamline its operations.

Acquisition of Joint Venture Stake

UNO Minda's board has approved the acquisition of Buehler Motor GmbH's entire 49.90% equity stake in UNO Minda Buehler Motor Private Limited. This acquisition, valued at INR 10.64 lakh, will transform the joint venture into a wholly owned subsidiary of UNO Minda Limited.

Termination of Joint Venture Agreement

Concurrent with the stake acquisition, UNO Minda will terminate its existing joint venture agreement with Buehler Motor GmbH. This move is expected to give UNO Minda greater control and flexibility in managing the operations of UNO Minda Buehler Motor Private Limited.

Investment in EV Subsidiary

In a separate but related development, UNO Minda has approved an investment of up to INR 40 crores in its wholly owned subsidiary, UNO Minda EV Systems. This significant capital injection is aimed at supporting the working capital requirements of the subsidiary, which specializes in manufacturing EV components for electric two and three-wheelers.

Strategic Implications

These corporate actions highlight UNO Minda's commitment to strengthening its position in the rapidly growing electric vehicle market. The table below summarizes the key aspects of these strategic moves:

By fully integrating the joint venture and bolstering its EV subsidiary, UNO Minda is positioning itself to capitalize on the growing demand for electric vehicle components in the Indian market, particularly in the two and three-wheeler segments.

These strategic decisions reflect UNO Minda's proactive approach to adapting to the changing automotive landscape and its commitment to playing a significant role in the electric mobility sector. As the EV market in India continues to evolve, UNO Minda's enhanced capabilities and focused investments could potentially strengthen its competitive position in this high-growth segment.

UNO Minda , a leading auto components manufacturer, has reported its highest ever quarterly revenue of ₹4,814 crores in Q2, marking a robust 13.4% year-on-year growth. The company's financial performance demonstrates strong momentum across its diverse product portfolio and deepening customer relationships.

Financial Highlights

• Revenue: ₹4,814 crores (13.4% YoY growth)
• EBITDA: ₹552 crores (14% YoY growth)
• EBITDA Margin: 11.5% (improvement from previous year)
• Profit After Tax: ₹304 crores (24% YoY growth)

Segment-wise Performance

The company's growth was broad-based across multiple product segments, with notable performances in lighting systems, seating systems, and other products.

Key Business Highlights

1. Switching Systems: The segment benefited from market share gains and a favorable customer mix in the two-wheeler segment.

2. Lighting Systems: Growth was driven by the start of tail lamp supplies for a recently launched customer model and the ramp-up of supplies for programs initiated in previous quarters.

3. Casting Business: The segment saw a 9% growth, with revenues of ₹465 crores from four-wheeler alloy business, ₹281 crores from two-wheeler alloy segment, and ₹171 crores from aluminum die casting.

4. Seating Systems: This segment registered an impressive 22% year-on-year growth, driven by favorable customer mix in the two-wheeler segment and increased revenue contribution from the bus passenger seat segment.

5. Other Products: This category, which includes controllers, sensors, ADAS, and EV systems, saw an 18% growth, contributing ₹1,070 crores to the total revenue.

Expansion and Future Outlook

Uno Minda currently has 10 expansion projects under implementation across product lines, with a total investment commitment of ₹2,356 crores. These investments are aligned with OEM expansion plans and the promising outlook for the auto industry.

The company's net debt as of September 30 stood at ₹2,362 crores, with a healthy net debt to equity ratio of 0.36. Uno Minda achieved a Return on Capital Employed (ROCE) of 19.6% based on annualized profits for H1.

Management Commentary

Sunil Bohra, Group Chief Financial Officer of Uno Minda Limited, expressed optimism about the company's future, stating, "We are entering the second half of the fiscal year with optimism and confidence. Our ongoing investments in new technologies such as EV systems, sensors, ADAS, alongside capacity expansion in core product lines position us well to capture emerging opportunities."

Bohra also highlighted the company's focus on sustainability, mentioning ambitious targets of achieving 60% renewable energy by 2030 and becoming carbon neutral by 2040.

As Uno Minda continues to prioritize innovation, operational excellence, and customer centricity, it remains well-positioned to capitalize on the growth opportunities in the evolving automotive landscape.

Note: All financial figures are in Indian Rupees (₹).