Minda Corporation , a leading automotive component manufacturer, has reported its highest ever quarterly revenue of Rs. 1,386.00 crores for Q1, marking a significant year-on-year growth of 16.2%. The company's performance outpaced the overall automotive industry, which grew by only 1.9% during the same period.

Strong Financial Performance

The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) also reached a record high of Rs. 156.00 crores, up 19% from the previous year, with the EBITDA margin improving to 11.3%. Despite challenges in the automotive sector, Minda Corporation maintained a stable Profit After Tax (PAT) of Rs. 65.00 crores, compared to Rs. 64.00 crores in the same quarter last year.

Segment-wise Performance

Minda Corporation's growth was driven by strong performances across its business segments:

1. Information and Connected Systems: This segment, which includes wiring harness and instrument clusters, grew by 19% to Rs. 736.00 crores.
2. Mechatronics and Aftermarket: This division saw a 13% increase, reaching Rs. 650.00 crores.

Key Developments and Strategic Initiatives

The company announced several strategic moves during the quarter:

1. Joint Venture with Toyodenso: Minda Corporation entered into a 60:40 joint venture with Toyodenso Corporation of Japan to develop and manufacture advanced automotive switches and control systems. The initial investment is set at Rs. 150.00 crores.

2. Partnership with Qualcomm: A strategic partnership was formed with Qualcomm for developing smart cockpit solutions, enhancing Minda's offerings in automotive electronics.

3. Land Acquisition: The company acquired 32 acres of land in Aurangabad, Maharashtra, for future expansion.

4. Strong Order Book: Minda Corporation closed the quarter with an order book exceeding Rs. 1,300.00 crores, with over 30% of new orders coming from new energy vehicles.

5. Patent Filings: The company filed six new patents during the quarter, bringing its total portfolio to over 110.

Flash Electronics Performance

Flash Electronics, an associate company of Minda Corporation, reported revenue of Rs. 376.00 crores, up 14% year-on-year. Its EBITDA stood at Rs. 59.00 crores with a margin of 15.8%.

Future Outlook

Aakash Minda, Executive Director of Minda Corporation, expressed optimism about the company's future, stating, "We remain committed to executing our strategic priorities with continued focus on enhancing our system solutions offering, strengthening customer relationships, and investing in new technologies."

The company expects a gradual recovery in the automotive sector, supported by the upcoming festive season and anticipated improvement in rural incomes following a favorable monsoon.

With its strong order book, strategic partnerships, and focus on new technologies, particularly in the EV segment, Minda Corporation appears well-positioned to capitalize on the evolving automotive landscape and maintain its growth trajectory in the coming quarters.

Minda Corporation Limited, a leading automotive component manufacturer, has announced robust financial results for the first quarter, demonstrating significant growth and strategic advancements.

Financial Highlights

Minda Corporation achieved a consolidated revenue of Rs. 1,386.00 crore in Q1, marking a substantial 16.2% year-over-year growth. This performance surpassed market expectations and was attributed to the company's strong product portfolio, expanding customer base, and focus on product premiumization.

The company reported a quarterly EBITDA of Rs. 156.00 crore, with an improved EBITDA margin of 11.3%, up by 23 basis points compared to the same period last year. Profit After Tax (PAT) reached Rs. 65.00 crore, maintaining a PAT margin of 4.7%.

Key Financial Metrics

Strategic Developments

Minda Corporation announced two significant strategic initiatives during the quarter:

1. Joint Venture with Toyodenso: The company entered into a joint venture agreement with Toyodenso to establish a new entity in India for manufacturing and selling advanced automotive switches. Minda Corporation will hold a majority stake of 60% in this venture, which aims to provide end-to-end solutions for automotive switches across various vehicle segments in the Indian market.

2. Collaboration with Qualcomm: Minda Corporation partnered with Qualcomm to co-develop Smart Cockpit Solutions. This collaboration involves designing a next-generation cockpit platform powered by Qualcomm's Snapdragon® Cockpit Platform, reflecting Minda's commitment to technological leadership and intelligent, connected user experiences.

Management Commentary

Ashok Minda, Chairman and Group CEO, commented on the results: "The first quarter witnessed a strong performance, supported by resilient demand across key vehicle segments. Leveraging our focus on operational excellence, technology integration, and customer-centric initiatives, we continued to strengthen our market position. As we progress through the year, we remain focused on expanding our market reach, enhancing exports, and delivering sustainable value to our stakeholders through consistent execution and strategic initiatives."

Future Outlook

Looking ahead, Minda Corporation aims to broaden its product portfolio by enhancing its competitive edge through sustained R&D investments. The company plans to continue strengthening strategic partnerships to leverage technological advancements and effectively address evolving customer needs in the automotive component sector.

Minda Corporation's strong Q1 performance and strategic initiatives position it well for continued growth in the dynamic automotive component market.