Minda Corp Q3 net grows 41 pc to Rs 70 cr

Strong business fundamentals and focus on strengthening core business helped deliver stable sales, the company said in the statement.

Auto components maker Minda Corporation on Friday reported a 41 per cent growth in consolidated Profit After Tax (PAT) at Rs 69.9 crore for the December quarter on the back of exceptional gain of Rs 32.74 crore due to revaluation of its stake in Minda Stoneridge. 

The company had posted a profit of Rs 49.50 crore in the third quarter of the financial year ended March 2021, according to a statement. 

The consolidated operating revenue during the quarter declined marginally to Rs 738.3 crore as compared to Rs 739.8 crore in Q3 FY21.

Strong business fundamentals and focus on strengthening core business helped deliver stable sales, the company said in the statement. 

It also said it has filed an application under the PLI Scheme for developing best-in-class and industry leading products.

''In the third quarter of FY22, Auto industry continued to be plagued with challenges in supply chain, threat from Covid waves and overall subdued sentiments. 

There was a broad based impact on all vehicle segments and the industry declined by around 10 per cent on a quarter-on-quarter basis. 

''On a year-on-year basis, industry has declined by around 20 per cent as last year Q3 FY21 recorded steep pent-up demand and filing of BS-VI inventory,'' the company's Chairman and CEO Ashok Minda said. Amidst these challenging circumstances, he said, Minda Corp has delivered consistent and stable performance with consolidated revenue of Rs 7,383 million. 

Besides, EBITDA margin improved to 10.7 per cent on sequential basis, he said, adding ''our PAT came at Rs 699 million which had an exceptional gain of Rs 3 27.4 million due to revaluation of our stake in Minda Stoneridge.'' Also, the transaction for the acquisition of Minda Stoneridge has been completed, and the entity has now become a wholly-owned subsidiary of Minda Corp.

The acquisition will aid in augmenting our core capabilities, he said. ''We have further strengthened our leadership by welcoming Vinod Raheja as Group Chief Financial Officer. 

His steady leadership and vast experience will further help us in creating value for all stakeholders. He will be instrumental in strategic finance, strengthening controls and robust governance,'' Minda added.