Q1 2027 Minda Corporation Ltd Earnings Call Transcript
Key Points
- Minda Corp Ltd (BOM:538962) achieved its highest-ever quarterly revenue of INR1,846 crores, a 33.2% year-on-year growth, surpassing consensus estimates.
- The company reported a record quarterly EBITDA of INR212 crores, with a margin of 11.5%, reflecting a 35.4% year-on-year growth and a 19-20 bps improvement.
- PAT surged by 216% year-on-year to INR206 crores, boosted by an exceptional gain of INR106 crores from the consolidation of Minda VAST.
- The company secured a lifetime order book of approximately INR2,500 crores during the quarter, with strong growth across key segments like wiring harness (30%+ YoY) and instrument clusters (35%+ YoY).
- EV revenue at Minda Corp Ltd (BOM:538962) grew by 40% year-on-year, contributing about 10% of total revenue, while associate Flash Electronics saw a 90% YoY growth in EV revenue, indicating strong momentum in the electric mobility segment.
- The consolidation of Minda VAST expanded the company's passenger vehicle presence, with kit values expected to potentially double in the coming years, enhancing growth prospects.
- The company maintained a strong focus on R&D, filing 7 patents in the quarter, bringing total filings to 335+, with 150 patents already granted.
- The quarter faced significant input cost pressures, including higher raw material prices, supply chain disruptions, manpower-related issues, and wage increases, which impacted margins.
- EBITDA margin was partially impacted by higher commodity prices, labor costs, and freight expenses, with only a modest 19-20 bps improvement despite strong revenue growth.
- Associate Flash Electronics' EBITDA margin dipped to 15.4% from the previous quarter due to higher commodity and labor costs, though the company expects recovery through pass-through arrangements.
- The share of profit from associates and JVs declined to INR18 crores from INR31.5 crores in the previous quarter, primarily due to lower contributions from Flash and Furukawa, impacted by cost pressures.
- Minda VAST, now consolidated, delivered a lower EBITDA margin of 8.4% compared to the company's overall 11.5%, indicating a drag on consolidated margins, though it improved from 6.5% year-on-year.
- The company faces a time lag in recovering cost inflation from customers, as indexation adjustments may take a quarter or two, potentially affecting near-term margins.
Ladies and gentlemen, good day, and welcome to Minda Corporation Limited Q1 FY27 earnings conference call hosted by Anand Rathi Shares and Stock Brokers Limited. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Mumuksh Mandlesha from Anand Rathi Shares and Stock Brokers Limited. Thank you, and over to you, sir.
Thank you, Nirav. Good evening, everyone. On behalf of Anand Rathi Shares and Stock Brokers, I would like to welcome the management team of Minda Corporation and thank them for this opportunity.
Today, we have with us Mr. Aakash Minda, Executive Director; Mr. Ajay Agarwal, Group CFO and President of Finance and Strategy; and Mr. Nitesh Jain, Lead Investor Relations. I shall now hand over the call to the management team for the opening remarks, post which we'll open the floor for the Q&A. Over to you, sir.
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