Minda Industries Q3FY22 Results: Consolidated Profit drops 12% YoY to Rs 101 crore

Minda Industries Limited, a supplier of automotive solutions to original equipment manufacturers, reported a 12.21 per cent YoY rise in the consolidated profit at Rs 101.29 crore for the quarter ended December 31, 2021, against Rs115.38 crore posted in the corresponding quarter of the previous financial year.

The company's revenue from operations rose 7.39 per cent YoY to Rs 2,181.38 crore in the reported quarter against Rs 2,031.18 crore posted last year. It has posted an EBITDA of Rs 235 crore, down 15.5 per cent YoY, from Rs 278 crore posted last year. Margin has contracted to 10.8 per cent in Q3FY22 against 13.7 per cent posted in Q3FY21.

Besides, the Board of Directors of the company has approved and declared an interim dividend at the rate of Rs 0.50 per share, i.e., 25 per cent on 28,56,20,441 equity shares (face value of Rs 2 each) for the financial year 2021-22. The Board has fixed Thursday, February 17, 2022, as the "Record Date" for the purpose of ascertaining the eligibility of shareholders for the payment of the interim dividend.

The payment of interim dividend/dispatch of dividend warrants will be completed on or before 30 days from the date of declaration.

In addition to it, Minda Industries Ltd (MIL), the flagship firm of the UNO MINDA Group, also said that it is increasing its stake in the subsidiary company Minda Kosei Aluminum Wheels (MKA) to 77.35 per cent from 70 per cent, with an investment of Rs 61.2 crore in the venture. The existing shareholders and Joint venture partners have renounced their rights in favour of MIL, enabling the company to increase its stake from 70 per cent to 77.35 per cent in Minda Kosei, the company said in a statement.

It is a 70:30 joint venture company between Minda Group and Kosei International Trade and Investment Company, Japan (Kosei Japan). Investment in Minda Kosei by Minda Group is held 69.99% by Minda Industries and 0.01% by Minda Investments.

The Board of Minda Kosei has made a Right Issue Offer of Rs. 61.20 crore. Kosei Japan and Minda Investment have renounced their Right in favour of Minda Industries.

Also, the company's Board has approved the acquisition of stakes in Samaira Engineering, a partnership firm, between Paridhi Minda - who holds 43.75 per cent; Pallak Minda – who holds 43.75 per cent and Sanjeev Garg – who holds 12.50 per cent. It is engaged in the M=manufacturing of auto electrical parts & accessories.

The Board approved the investment upto Rs 8.88 crore in Samaira Engineering for the acquisition of a 43.75 per cent stake from Paridhi Minda and a 43.75 per cent stake from Pallak Minda. Post this acquisition, MIL will hold an 87.50 per cent stake in Samaira Engineering.

The Board has also Minda Industries has approved the acquisition of the stake in S. M. Auto Industries, a partnership firm between Paridhi Minda – who holds 37.50 per cent; Suman Minda – who holds 50 per cent and Sanjeev Garg – who holds 12.50 per cent. It is engaged in the manufacturing of automotive bulbs and Lever/yoke.

The Board approved the investment upto Rs 3.21 crore in S.M. Auto Industries for the acquisition of a 37.50 per cent stake from Paridhi Minda and a 50 per cent stake from Suman Minda. Post this acquisition, MIL will hold an 87.50 per cent stake in S.M. Auto Industries.