Earnings Call Transcript Analysis Report #
Minda Corporation Limited - Q3 FY25 Earnings Call Analysis (February 06, 2025) #
Financial Performance #
Key Financial Metrics (Q3 FY25 Consolidated) #
- Revenue: INR 1,253 crores, +7% YoY.
- EBITDA: INR 144 crores, +10.5% YoY.
- EBITDA Margin: 11.5% (highest ever), +32 bps YoY.
- Profit Before Tax (PBT): INR 90 crores, +19.2% YoY; Margin 7.2% (+67 bps YoY).
- Profit After Tax (PAT): INR 65 crores, +23.5% YoY; Margin 5.1% (+64 bps YoY).
- Interim Dividend: 25% on face value recommended by the Board.
Key Financial Metrics (9M FY25 Consolidated) #
- Revenue: INR 3,735 crores, +9% YoY.
- EBITDA: INR 422 crores, +12% YoY.
- EBITDA Margin: 11.3% (up from 10.9% YoY).
- PAT: INR 203 crores, +30% YoY; Margin 5.4% (up from 4.5% YoY).
Revised Guidance/Forecasts #
- Commitment to outperform industry growth (1.5x in the midterm to long term).
- EBITDA margins expected to be stable and grow.
Areas of Growth #
- Domestic OE business grew by double-digits YoY.
- Premiumization across product lines (smart keys, TFT clusters).
- EV platforms (contributing over 25% to new order wins).
Areas of Decline/Subdued Performance #
- Exports, particularly from the European market.
- ASEAN operations slowdown.
- Downturn in the commercial vehicle (CV) segment.
- “Others” segment revenue contribution decreased YoY (9M) from 13% to 8%, attributed to export challenges and underperformance of some new-age OEMs.
Strategic Initiatives & Business Updates #
Major Strategic Announcements #
- Flash Electronics Partnership: Completed acquisition of 49% stake in Flash Electronics for INR 1,372 crores (all cash). Transaction valued Flash at INR 3,100 crores. Net debt to equity to be 0.6x in the short term; pro forma net debt to pro forma EBITDA < 1.8x.
- Order Wins:
- Q3 FY25 lifetime order wins: > INR 1,250 crores (EV platforms > 25%).
- 9M FY25 lifetime order wins: > INR 6,000 crores.
- Credit Rating Upgrade: Fitch upgraded Minda Corporation from AA- to AA.
- Patents: 17 patents filed in 9M FY25, total 290+.
- R&D Spend: Increased to ~4% of sales (opex + capex).
New Products, Services, or Markets Discussed #
- Focus on EV power electronics, EV charging stations, Intelligent Transportation Systems (ITS) for EV buses, wireless chargers, telematics.
- Combined 2-wheeler EV kit value with Flash: INR 30,000 - INR 35,000.
- Flash has ready products (motor, motor controller) for 4W and other segments.
- Minda Corp power electronics for 4W: Orders won, mass production by end of FY26.
Significant Operational Changes #
- Capacity expansion in die-casting, instrument clusters, and EV products.
- Localization of wiring harness connectors: Minda Corp internal consumption ~15% for its wiring harness division; overall import dependence for connectors down to 50%.
Ongoing or Completed Projects #
- Sunroof and power tailgate project (with HCMF): Products under testing and validation with customers.
- High-voltage connectors for wiring harness (with Sanko).
Market & Competitive Landscape #
Industry Trends #
- Indian Automotive (Q3 FY25 YoY): Overall +6.5%; 2W +8%, PV +2.8%, CV de-grew, Tractors +12%.
- Indian Automotive (9M FY25 YoY): Overall +10%; 2W +13%, PV +2.5%, CV -6%, Tractors +5%.
- EV 2W registration (Q3 FY25) +37% YoY.
- Strong trend towards premiumization (e.g., smart keys, TFT clusters).
Competitive Positioning Statements #
- Aiming to create the “largest EV platform in the country” through the Flash partnership.